How to Use the Sales Tax Calculator
What is Sales Tax?
Sales tax is a consumption tax imposed by the government on the sale of goods and services. In the United States, sales tax rates vary by state and sometimes by city or county. Most states charge between 4% and 8% sales tax, though some states like Alaska, Delaware, Montana, New Hampshire, and Oregon have no state-level sales tax.
Forward vs. Reverse Calculation
- Forward Calculation: When you know the price before tax and want to calculate the total price including tax. Formula: Total = Price × (1 + Tax Rate / 100)
- Reverse Calculation: When you know the total price including tax and want to find the original price. Formula: Price = Total / (1 + Tax Rate / 100)
US Sales Tax by State
Our calculator includes preset sales tax rates for all 50 US states. These are base state-level rates. Keep in mind that local jurisdictions (cities and counties) often add additional taxes, so your actual rate may be higher. Always verify the exact rate for your specific location.
Examples
- Forward: A $100 item in California (7.25% tax) = $107.25 total
- Reverse: A $107.25 total in California (7.25% tax) = $100 original price
- Custom: A $50 item with 8.5% tax = $54.25 total