Sales Tax Calculator
A $149 item in a 9.5% tax state costs $163.16 at the register — the extra $14.16 arrives as a surprise at checkout. Enter a price and rate to get the total, or reverse-calculate the pre-tax amount from any tax-inclusive price.
Last updated: April 2026
Add tax to a price
Enter the price before tax and the tax rate. Results show the tax amount and total to pay.
Remove tax from a tax-inclusive total
Enter a price that already includes tax to find the original pre-tax price.
How to calculate sales tax
To add sales tax: Total = Price × (1 + Rate ÷ 100). To remove tax from a tax-inclusive price: Pre-tax = Total ÷ (1 + Rate ÷ 100).
Worked examples
Adding tax: A $65 item with 8.5% sales tax: $65 × 1.085 = $70.53. The tax amount is $65 × 0.085 = $5.53.
Removing tax: You paid $108.50 including 8.5% tax. Pre-tax price = $108.50 ÷ 1.085 = $100.00. The tax was $8.50. The common mistake is to subtract 8.5% directly ($108.50 × 0.085 = $9.22) — wrong, because 8.5% of the gross is a different amount than 8.5% of the net.
Sales tax and VAT reference rates
| Region / Country | Standard rate | Notes |
|---|---|---|
| United States (federal) | 0% | No federal sales tax — rates vary by state |
| US average (combined) | ~7% | Ranges from 0% (OR, MT, NH, DE) to 11.5%+ |
| California | 7.25% + local | Combined avg ~8.7% |
| New York | 4% + local | NYC combined rate 8.875% |
| Texas | 6.25% + local | Max combined 8.25% |
| United Kingdom | 20% VAT | Reduced rate 5% · Zero rate for food/children’s |
| European Union | 17–27% VAT | Luxembourg 17% · Hungary 27% |
| Canada (GST) | 5% federal | Plus provincial HST/PST (5–15% combined) |
| Australia (GST) | 10% | Most goods and services |
How to remove tax from a tax-inclusive price
Divide the total by (1 + Rate ÷ 100). If you paid $120 including 20% VAT: $120 ÷ 1.20 = $100 before VAT. The VAT was $20. This is the most commonly misunderstood calculation — many people incorrectly subtract 20% from $120 and get $96, which is wrong because the 20% in a gross price represents a different base.
Sales tax vs VAT
US sales tax is only charged at the final point of sale. VAT (used in the UK, EU, and most of the world) is charged at every stage of production, but businesses reclaim the VAT on their inputs — so the final consumer bears the full burden either way. For European VAT specifically, the VAT calculator includes country presets for the UK, Netherlands, Germany, France, Switzerland, and more. When dining out, note that tip is typically calculated on the pre-tax subtotal — the tip calculator handles the full breakdown including splitting between diners.
Sales tax nexus and online shopping
In the US, whether a seller must collect sales tax depends on whether they have “nexus” in the buyer’s state. Physical nexus includes a store, warehouse, or office. Economic nexus (established in all states following the 2018 South Dakota v. Wayfair ruling) means that online sellers above a certain revenue threshold must collect that state’s sales tax even without a physical presence. As a result, most major online retailers now collect sales tax in all states. Small sellers below state thresholds may still be exempt.
Tax-exempt purchases
Many categories are partially or fully exempt from sales tax depending on the state. Common exemptions include groceries (exempt in about 30 states), prescription medicine (exempt in most states), clothing below a threshold (exempt in Pennsylvania, New Jersey, and New York), and purchases by registered non-profit organisations. Some states also hold annual tax-free weekends for school supplies. If making an exempt purchase, you typically need to provide a tax exemption certificate to the seller.
Applying a discount before tax
Tax is always calculated on the final sale price, not the original. A $200 item discounted 25% is taxed on $150, not $200. If you need to apply both a discount and a tax in one step, the discount + tax calculator handles both in the correct order and shows the exact breakdown.
Frequently asked questions
$50 × 0.085 = $4.25 tax. Total = $50 + $4.25 = $54.25. Using the formula: $50 × 1.085 = $54.25.
Divide the VAT-inclusive price by (1 + VAT rate ÷ 100). For 20% VAT: divide by 1.20. A £60 price including 20% VAT: £60 ÷ 1.20 = £50 before VAT. The VAT is £10.
Oregon, Montana, New Hampshire, Delaware, and Alaska have no statewide sales tax. Alaska allows local sales taxes, so some municipalities do charge sales tax.
Sales tax (used in the US) is charged only at the final point of sale to the consumer. VAT (used in the UK, EU, and most of the world) is charged at each stage of production and distribution, but businesses can reclaim the VAT they paid on inputs. The end consumer pays the same total amount either way.
$75 × 0.08 = $6 tax. Total = $75 + $6 = $81. Or use the formula directly: $75 × 1.08 = $81.
It depends on the state. About 30 states fully exempt groceries from sales tax. Others apply a reduced rate. A few states — including Tennessee and Alabama — tax groceries at the full rate. Prepared food (restaurant meals, hot takeaway) is taxed in virtually all states.
Yes — completely free, no signup, no ads. Results calculate instantly in your browser.