Sales Tax Calculator
Calculate how much sales tax you'll pay on any purchase, or find the pre-tax price.
🏷️ What is Sales Tax?
Sales tax is a consumption tax imposed by a government on the sale of goods and services. In the United States, sales tax is levied at the state level (and often at the city, county, or district level on top of the state rate), making it one of the most complex tax systems in the world. Unlike the income-based taxes filed annually, sales tax is collected at the point of purchase - you pay it every time you buy a taxable item.
The United States does not have a federal sales tax. Instead, each of the 50 states sets its own rate, and local governments within those states can add additional taxes on top. This means the total sales tax you pay on a purchase can vary significantly depending on exactly where you make the purchase. For example, the combined state + city sales tax in New York City is 8.875%, while it is 10.25% in Chicago, and 0% in Beaverton, Oregon (no state or local sales tax).
Sales tax applies differently to different types of goods. Virtually every state taxes most tangible personal property and most services. Common exemptions include groceries (in many states), prescription drugs, medical devices, and agricultural equipment. The rules are highly state-specific and can even vary by product category - a prepared hot sandwich may be taxed while a cold sandwich is not.
For businesses selling across multiple states, sales tax compliance is a major administrative challenge. Online sellers became subject to multi-state sales tax collection obligations after the Supreme Court's 2018 South Dakota v. Wayfair decision. This calculator helps consumers quickly calculate the final price of any purchase and helps businesses verify tax amounts across any rate.
📐 Sales Tax Formula
Sales tax calculations use simple percentage arithmetic:
To find the pre-tax price from a tax-inclusive total: divide the total by (1 + rate/100). Do not simply subtract the tax rate percentage - this gives an incorrect result because the rate is applied to the net price, not the total.
📖 How to Use This Calculator
Steps to Calculate Sales Tax
💡 Example Calculations
Example 1 - Electronics Purchase in California
Laptop priced at $899.99. California state rate: 7.25%.
Example 2 - Finding Pre-Tax Price from a Receipt in Texas
You paid $53.50 for clothing in Texas (6.25% state rate + 2% local = 8.25%).
❓ Frequently Asked Questions
🔗 Related Calculators
What is sales tax and how does it differ from VAT?
Sales tax is a single-stage tax charged only at the point of final sale to the consumer, collected entirely by the retailer. VAT is a multi-stage tax collected at every step of the supply chain, with businesses claiming back VAT paid on inputs. In the US, sales tax rates vary by state and even city or county. In Europe and most other countries, VAT is used instead. From the consumer's perspective, both add a percentage to the final purchase price.
Which US states have the highest and lowest sales tax rates?
State-only (base) rates as of mid-2026: California has the highest state rate at 7.25%, followed by Indiana, Mississippi, Rhode Island, and Tennessee at 7%. However, combined state + local rates are often higher - Tennessee averages 9.55%, Louisiana 9.55%, Arkansas 9.46%. The five states with no state sales tax are Montana, Oregon, New Hampshire, Delaware, and Alaska (though Alaska allows local taxes up to 7.5%).
Are groceries subject to sales tax in the US?
It depends on the state. Most states exempt grocery food from sales tax or apply a reduced rate. States that fully tax groceries include Alabama, Mississippi, South Dakota, and Hawaii. States that fully exempt groceries include California, New York, Texas, and Florida. Prepared food (restaurant meals, hot food from delis) is taxed in almost every state, even when packaged groceries are exempt.
How do I calculate the pre-tax price from a tax-inclusive total?
Divide the total (tax-inclusive) price by (1 + tax rate/100). For a 7% sales tax: Pre-tax price = Total ÷ 1.07. For example, if you paid $107 for an item with 7% sales tax, the pre-tax price was $107 ÷ 1.07 = $100, and the tax was $7. Use the 'Remove Tax' mode in this calculator to do this instantly.
Do I pay sales tax when shopping online?
Since the US Supreme Court's 2018 South Dakota v. Wayfair ruling, states can require online retailers to collect sales tax even without a physical presence in the state. Most major online retailers (Amazon, Walmart, Target) now collect sales tax on purchases in nearly all states. The requirement typically applies when a retailer exceeds $100,000 in sales or 200 transactions in a state annually.
How much is sales tax on a $1,000 purchase in California?
California has a state sales tax of 7.25%, but most purchases in California also include local district taxes, making the effective rate 8–10.75% depending on the city. In Los Angeles, the combined rate is 10.25%, so a $1,000 purchase would cost $1,102.50. In San Francisco, the rate is 8.625%, for a total of $1,086.25. Always check the combined rate for your specific location.
Is sales tax deductible on US federal tax returns?
Yes. US taxpayers who itemise deductions can deduct either state income tax or state and local sales tax paid during the year - but not both. This is the SALT (State and Local Taxes) deduction, currently capped at $10,000 per year ($5,000 if married filing separately) under the 2017 Tax Cuts and Jobs Act. The sales tax deduction is most beneficial for residents of states with no income tax (like Texas, Florida, Washington) who pay significant sales tax.
What is the difference between sales tax and VAT?
Sales tax is collected only at the final point of sale to the consumer - there is no credit for tax paid at earlier stages. VAT (Value Added Tax) is collected at every stage of the supply chain, but each business claims credit for VAT already paid (input tax credit), so the final consumer pays tax only on the net value added. Most countries have moved from sales tax to VAT or GST for this reason.