Sales Tax Calculator
The Sales Tax Calculator can compute any one of the following, given inputs for the remaining two: before-tax price, sale tax rate, and final, or after-tax price.
Sales Tax Calculator
Result
| Description | Amount |
|---|---|
| Before Tax Price | $100.00 |
| Tax Rate | 6.50% |
| Tax Amount | $6.50 |
| After Tax Price (Total) | $106.50 |
Your Input
Frequently Asked Questions
Sales tax is calculated by multiplying the before-tax price by the tax rate:
Example: $100 item with 6.5% tax:
After-Tax Price = $100 + $6.50 = $106.50
Sales tax is a consumption tax imposed by state and local governments on the sale of goods and services at the point of purchase.
Key characteristics:
- Added at the time of sale/checkout
- Paid by the consumer, collected by the seller
- Varies by state, county, and city
- Different for different product categories
- Used for local government funding
No. Many items are exempt from sales tax depending on your state and country:
Commonly exempt items:
- Groceries and food items
- Prescription medications
- Medical equipment
- Clothing (in some states)
- Newspapers and magazines
- Services (varies by state)
- Agricultural items
Note: Restaurant meals, snacks, and prepared foods usually ARE taxed.
The average U.S. sales tax rate is approximately 7-8%, but rates vary significantly:
U.S. Sales Tax Statistics (2024):
- Highest: California (7.25% - can reach 10%+ with local)
- Average combined rate: ~8.63%
- No state sales tax: Delaware, Montana, New Hampshire, Oregon
- Lower rates: Colorado (4.63%), Georgia (4%), Hawaii (4.17%)
Yes! This calculator works with any two known values:
Example: You paid $106.50 total with 6.5% tax:
Tax Amount = $106.50 - $100.00 = $6.50
Sales tax is important for several reasons:
- Budgeting: The final price is higher than advertised
- Business Planning: Must account for tax in profit calculations
- Pricing: Retailers must decide if price includes tax
- Comparisons: Makes comparison shopping more complex
- Travel: Different rates in different locations
- Online Shopping: May or may not include local taxes
In the United States: Generally NO. The displayed price is before tax.
- You see $100, but pay $106.50 (with 6.5% tax)
- Tax is added at checkout
- Exception: Some states require tax-inclusive pricing for some items
In other countries: Often YES. Many countries display prices including tax.
- EU countries: Prices include VAT
- Canada: Some provinces include GST/HST
- Australia: Prices include GST
Methods to find your local sales tax rate:
- State Tax Department: Visit your state's revenue or tax department website
- City/County Website: Local government sites list local tax rates
- Receipt: Check a recent receipt to see the tax rate applied
- Online Tools: Use ZIP code lookup tools for combined rates
- Ask Store: Retailers know the exact rate for their location