Sales Tax Calculator
Calculate Sales Tax and Total Prices
Step 1
Enter purchase details
Price before sales tax
Combined state + local sales tax rate (0% in AK, DE, MT, NH, OR)
Number of items at this price
Enter your price and tax rate to calculate sales tax amount and total price, or reverse calculate to find pre-tax price.
Step 2
Results snapshot
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Visualize how tax inflates your cart total.
Quick insights
Price per item
$0.00
What you pay per unit after tax is applied.
Reverse sales tax
$0.00
Pre-tax price if you only know the total charged.
Tax rate
7.00%
Combined state + local rate you're using for this purchase.
How to use these numbers
Sales Tax by State (2025)
No sales tax (0%): Alaska*, Delaware, Montana, New Hampshire, Oregon (*local taxes may apply).
Lowest state rates: Colorado 2.9%, Georgia 4%, Hawaii 4%, Wyoming 4%.
Highest state rates: California 7.25%, Indiana 7%, Mississippi 7%, Rhode Island 7%, Tennessee 7%.
Highest combined rates (state + local): Louisiana 9.56%, Tennessee 9.55%, Arkansas 9.45%, Alabama 9.25%, Washington 9.23%.
Check your local rate as combined state + local can be much higher than state rate alone.
How Sales Tax Works
Sales tax is calculated as a percentage of the purchase price.
Formula: Sales Tax = Price × Tax Rate.
Example: $100 item with 7% tax = $100 × 0.07 = $7 tax → $107 total.
Combined rate: Most areas have state + county + city + special district taxes added together.
Example: CA state 7.25% + SF county 0.25% + SF city 1.5% = 9% total.
Always use the combined rate for accurate calculations.
Reverse Sales Tax Calculation
When you know the total price (including tax) but need to find the pre-tax amount:
Formula: Pre-Tax Price = Total Price / (1 + Tax Rate).
Example: $107 total with 7% tax → $107 / 1.07 = $100 pre-tax.
Use this to:
- Calculate original price from receipt totals
- Determine base price for accounting
- Separate tax for expense reports
- Compare prices across different tax jurisdictions
What's Taxable vs Tax-Exempt?
Generally taxable: Tangible goods (electronics, furniture, clothing*, cars).
Often exempt:
- Groceries (33 states exempt)
- Prescription drugs (45 states exempt)
- Clothing (exempt in PA, NJ, MN, MA, RI above certain thresholds)
Services: Usually NOT taxed, but varies (Hawaii taxes most services, Texas taxes some).
Online purchases: Subject to sales tax if seller has nexus (presence) in your state.
Since 2018 Supreme Court ruling, most online purchases are taxed.
Check your state's rules for specific items.
Sales Tax vs Use Tax
Sales Tax: Collected by seller at point of sale, remitted to state by seller.
Use Tax: Owed by buyer on purchases from out-of-state sellers that didn't collect sales tax, self-reported by buyer (rarely paid).
Example: Buy $1,000 computer from out-of-state seller with no tax → You technically owe $70 use tax (if 7% rate) to your state.
Most states require use tax on tax returns but few consumers pay it.
Since 2018, most major online sellers now collect sales tax, reducing use tax scenarios.
Why Sales Tax Rates Vary So Much
State autonomy: Each state sets own rate (or chooses no sales tax).
Local control: Counties, cities, special districts can add local taxes.
Revenue needs: States without income tax often have higher sales tax (TN 9.55% avg, no income tax).
Special districts: Transit, tourism, stadiums funded via sales tax add-ons.
Example: In CA, two cities 10 miles apart can have rates differing by 2%+ due to local measures.
Combined rate = State + County + City + Special Districts can exceed 11% in some locations.
Impact of Sales Tax on Budgeting
Sales tax adds 4-10% to most purchases (5-11% in high-tax areas).
On $50,000 annual spending:
- 7% tax = $3,500/year in sales tax paid
- 10% tax = $5,000/year
High-tax items to plan for:
- Cars ($30K car + 7% = $2,100 tax)
- Furniture ($5K sofa + 7% = $350 tax)
- Electronics, appliances
Budget tip: For big purchases, multiply price by 1.07 (or your rate) to get true cost.
Some states have sales tax holidays (back-to-school, hurricane prep) for tax-free shopping on certain items.
How to Save on Sales Tax (Legally)
Shop during tax-free holidays: Many states have sales tax holidays for clothing, school supplies, emergency supplies.
Buy online from out-of-state sellers: Less common now, but some small sellers don't collect (though you legally owe use tax).
Shop in states with lower rates: If near a border, might save on big purchases.
Use exemption certificates: Businesses buying for resale, nonprofits, government entities.
Move to no-sales-tax state: AK, DE, MT, NH, OR have no state sales tax.
Note: Tax evasion (illegally avoiding use tax) is illegal.
These are legal strategies only.
Sources & methodology
- Tax Foundation - State Sales Tax Rateshttps://taxfoundation.org/data/all/state/2025-sales-taxes/
- US Census Bureau - State Government Tax Collectionshttps://www.census.gov/programs-surveys/stc.html