Sales Tax Calculator
This sales tax calculator helps you estimate tax on purchases based on the item price and sales tax rate. It is useful for budgeting, retail pricing, and understanding total purchase cost before checkout.
Purchase Details
Total Cost
Enter price and tax rate to calculate total.
How Sales Tax Works
Sales tax is a consumption tax added to the purchase price of goods and, in many states, certain services. The formula is simple: Tax Amount = Item Price × (Tax Rate ÷ 100), and total price equals the item price plus the tax amount. The seller collects the tax from the buyer and remits it to the state and local government.
The US has no federal sales tax — rates are set by states, counties, and cities. Combined state and local rates range from 0% in states like Montana and Oregon to over 11% in parts of Louisiana and Tennessee. When shopping online, you typically pay the sales tax rate of your delivery address, not the retailer's location, following the Supreme Court's 2018 South Dakota v. Wayfair ruling.
What Is and Isn't Taxed
Most physical goods are taxable, but states carve out many exemptions. Groceries are exempt or reduced-rate in about 30 states. Prescription drugs are exempt in nearly every state. Clothing under $110 is exempt in New York and Minnesota. Services like haircuts, accounting, and legal work may or may not be taxed depending on the state. If you are shopping for a large purchase, it is worth checking the exact rules for your state — tax on a $50,000 car can range from $0 (Oregon) to over $5,500 (combined rates in some California counties).
Frequently Asked Questions
How do I find the exact sales tax rate for my area?
The most reliable method is to check your state's department of revenue website — most have a lookup tool where you enter a zip code and get the combined state + county + city rate. The IRS also publishes a sales tax deduction calculator with up-to-date rates. As a quick reference: California's base rate is 7.25% (with local additions up to about 10.75%), Texas is 6.25% state + up to 2% local, Florida is 6% + up to 1.5% local, and New York City is 8.875%.
Can I deduct sales tax on my federal tax return?
Yes, if you itemize deductions. You can deduct either state income taxes OR state and local sales taxes — whichever is larger — as part of the SALT deduction (State and Local Tax deduction), which is currently capped at $10,000 for individuals and married couples filing jointly. This is most beneficial for people in states with no income tax (like Texas, Florida, and Washington) who pay significant sales tax. If you take the standard deduction, the sales tax deduction does not apply.
If a price is shown "after tax," how do I back out the original price?
Divide the after-tax price by (1 + tax rate). If the total was $108.50 with 8.5% tax, the pre-tax price was $108.50 ÷ 1.085 = $100. This is called reverse sales tax calculation and is useful when you only have a receipt total and need to separate the price from the tax for accounting or expense reporting purposes.