Sales Tax Calculator - Add or Remove Tax Instantly

How to use the sales tax calculator

Enter the dollar amount and tax rate, then choose whether to add tax to a pre-tax price or remove tax from a tax-included total. Results update instantly as you type.

Use the US state rate lookup to instantly fill in your state's base rate. Note that local (city/county) taxes are not included. Your actual rate may be higher.

How sales tax is calculated

Adding tax is straightforward:

Tax amount = Pre-tax price × (Rate ÷ 100)
Total      = Pre-tax price + Tax amount

For example: $50 item at 8% sales tax -> $50 × 0.08 = $4.00 tax -> total $54.00.

How to remove sales tax from a total

If you know the total and want the pre-tax price, divide by (1 + rate):

Pre-tax = Total ÷ (1 + Rate ÷ 100)
Tax     = Total − Pre-tax

Example: $54.00 total with 8% tax -> $54 ÷ 1.08 = $50.00 pre-tax.

Common sales tax rates by US state

These are state-level base rates (as of 2025). Local taxes are separate and can add 1–5 percentage points depending on your city or county.

Is sales tax charged on the pre-tax or post-tax price?

Sales tax is always charged on the pre-tax (net) price. It is never applied to itself. This means if an item costs $100 and the tax rate is 8%, you pay $8 in tax, not 8% of $108.

VAT vs. sales tax

The United States uses a retail sales tax collected only at the point of sale and added on top of the listed price. Most of the rest of the world uses Value Added Tax (VAT), which is collected at every stage of production (from raw materials to retailer). VAT is typically built into the displayed price, so the sticker price is the price you pay.

This difference explains why international online retailers often handle tax differently: a US customer sees a price and then tax is added at checkout; a European customer sees a VAT-inclusive price and pays exactly that amount. Businesses operating in both markets must account for this in their pricing and invoicing.

Sales tax exemptions

Exemptions vary dramatically by state and product category. Common exemptions include:

• Groceries: exempt in some states (e.g., Texas exempts most unprepared food); taxed in others.
• Prescription drugs: exempt in most states; over-the-counter drugs are often taxable.
• Clothing: exempt in states like Pennsylvania and Minnesota; taxable in most others. New York exempts clothing items under $110.

Always check your state's department of revenue for the exact rules for your product category and location.