How to Use the Sales Tax Calculator
The Sales Tax Calculator adds or removes US sales tax from any price for all 50 states, Washington DC, and supports custom tax rates. It handles both the 'add tax to price' and 'extract tax from tax-inclusive price' directions.
Enter the price, select your state (or enter a custom rate for local sales tax variations), and choose whether to add tax or extract it from a total. The calculator shows the pre-tax price, tax amount, and total immediately.
A critical nuance is that sales tax in the US varies not just by state but by county and city — adding local option taxes on top of the state rate. Many states like California have base rates of 7.25% but total rates reaching 10.75% in some cities. Always verify the specific rate for your location, particularly for high-value purchases.
📊 Worked Example
$299 laptop in different states:
- Oregon (0%): $299.00
- Texas (6.25%): $317.69
- California (7.25% base): $320.66
- New York (4% base + local): ~$322.49
Common Use Cases
- ✅ Calculating the final price of a purchase including sales tax
- ✅ Reverse-calculating the pre-tax price from a receipted total
- ✅ Comparing the after-tax cost of a purchase across different states
- ✅ Working out sales tax for small business invoicing
- ✅ Budgeting for a major purchase by including tax
- ✅ Calculating sales tax remittance for e-commerce sellers
Frequently Asked Questions
Which US states have no sales tax?
Five states have no state sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. However, Alaska allows local municipalities to impose sales tax, so some Alaskan localities do have taxes. Montana, New Hampshire, and Oregon have no sales tax at any level, making them popular for large purchases.
Is sales tax the same across a whole state?
No. Most states have a base state rate plus allow counties and cities to add their own rates. California's state rate is 7.25%, but some areas reach 10.75% with combined local taxes. New York City's combined rate is 8.875%. Always check the exact rate for your specific location for significant purchases.
Are there items exempt from sales tax?
Many states exempt basic necessities: groceries (most states), prescription drugs (most states), clothing under a threshold (New York, Pennsylvania, etc.), and medical devices. Exemptions vary by state — some states exempt all food; others only uncooked items. Business-to-business purchases for resale are also typically exempt with a resale certificate.
How do I calculate reverse sales tax?
If you have a tax-inclusive price and need the pre-tax amount: Pre-tax = Total ÷ (1 + tax rate). For a $107 total at 7% tax: $107 ÷ 1.07 = $100 pre-tax, $7 tax. Our calculator does this automatically in 'extract tax' mode.
Do online purchases require sales tax?
Yes, since the 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. Major online retailers (Amazon, Walmart, Target) now collect sales tax in all states that have it. Small sellers may still be exempt below economic nexus thresholds.