How to Calculate Sales Tax
Sales tax is a consumption tax imposed by state and local governments on the sale of goods and services. In the United States, sales tax rates vary significantly by state — from 0% in states like Oregon and Montana to over 10% when combined with local taxes in some cities.
Our free sales tax calculator makes it simple to find the total price including tax, the tax amount alone, or work backwards from a total to find the pre-tax price.
Sales Tax Formula
- Total with tax: Price × (1 + Tax Rate/100). Example: $100 at 8% = $108
- Tax amount: Price × (Tax Rate/100). Example: $100 at 8% = $8 tax
- Pre-tax price: Total / (1 + Tax Rate/100). Example: $108 total at 8% = $100
States With No Sales Tax
Five US states have no statewide sales tax — Alaska, Delaware, Montana, New Hampshire and Oregon. However Alaska allows local municipalities to impose sales taxes, so actual rates may vary by city.
States With Highest Sales Tax
- California — 7.25% state rate (highest in the US)
- Indiana, Mississippi, Rhode Island, Tennessee — 7% state rate
- Minnesota, Nevada — 6.875% and 6.85% respectively
- Combined state and local rates can exceed 10% in some areas
Frequently Asked Questions
How do I calculate sales tax on a purchase? +
Multiply the purchase price by the tax rate in decimal form. For example, to calculate 8% sales tax on a $50 item: $50 × 0.08 = $4 tax. Total price = $50 + $4 = $54. Use our calculator above for instant results on any price and tax rate.
How do I find the pre-tax price from a total? +
Divide the total price by (1 + tax rate as decimal). For example, if you paid $108 total with 8% tax: $108 / 1.08 = $100 pre-tax price. The tax paid was $108 - $100 = $8. Use our "Remove Tax from Total" mode above to calculate this instantly.
Which US states have no sales tax? +
Five states have no statewide sales tax: Alaska, Delaware, Montana, New Hampshire and Oregon. However Delaware has a gross receipts tax on businesses. Alaska allows local sales taxes so actual rates vary. If you shop online, sales tax is typically charged based on where the item is delivered.
Is sales tax charged on online purchases? +
Yes. Since the 2018 Supreme Court decision in South Dakota v. Wayfair, online retailers are required to collect sales tax based on the buyer's location — not the seller's location. This means you pay the sales tax rate of your state and sometimes your city when shopping online, just as you would in a physical store.
Are groceries and food taxed? +
It depends on the state. Some states fully exempt groceries from sales tax, others tax them at a reduced rate and some tax them at the full rate. States like California, Texas and New York exempt most unprepared grocery food. Prepared food like restaurant meals is typically taxed in all states. Check your specific state's rules for details.