How It Works
Sales tax adds a percentage to the pre-tax price of goods and services. The calculator finds the total price with tax, extracts the pre-tax price from a total, or determines the tax rate from known prices.
U.S. sales tax rates range from 0% (Delaware, Oregon) to over 10% when combining state and local rates. The national average is approximately 7.5%.
Example Problem
You buy a $850 laptop with 8.25% sales tax.
- Tax = $850 × 8.25 / 100 = $70.13
- Total = $850 + $70.13 = $920.13
Reverse: if you paid $920.13 total, the pre-tax price is $920.13 / 1.0825 = $850.00.
Frequently Asked Questions
How do I calculate sales tax from a receipt total?
Divide the total by (1 + rate/100) to get the pre-tax price. Subtract from the total to find the tax. For a $107.50 total at 7.5%: price = $107.50 / 1.075 = $100, tax = $7.50.
Which US states have no sales tax?
Five states have no state sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. However, Alaska allows local jurisdictions to charge sales tax, so some areas within Alaska do collect it.
Is sales tax applied to online purchases?
Since the 2018 Wayfair Supreme Court decision, most states require online retailers to collect sales tax if they have sufficient sales volume in that state. This applies to nearly all major e-commerce purchases.
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Reference: Sales tax rates vary by state and locality. Check your local government website for current rates.