Sales Tax Calculator
Modify the values and click calculate
Purchase Details
Total Price
Enter a price and tax rate to see the full breakdown.
How US Sales Tax Works
US sales tax is a single-stage tax added once at the point of sale -- the price on the shelf tag is the pre-tax price, and the tax is calculated and added at checkout. That's a very different mechanism from Value Added Tax (VAT), used across the UK and EU, which is embedded in the listed price and collected in stages throughout the supply chain -- see our VAT Calculator for that framing.
Added at the Register
Unlike VAT, US sales tax is not included in the sticker price. It's calculated on the pre-tax subtotal and added as a separate line item at checkout.
Rates Vary by Location
Sales tax rates are set at the state, county, and city level -- there is no single national rate. Enter your combined local rate for the most accurate figure.
Working Backward from a Total
If you only know a receipt's final total, dividing it straight by (1 + tax rate) recovers the pre-tax price -- you can't just subtract the rate as a percent of the total.
Not Every Sale Is Taxed
Many jurisdictions exempt categories like groceries, prescription medicine, or clothing below a threshold -- this calculator assumes the full amount is taxable at the rate you enter.
Worked Example
Adding tax to a pre-tax price: a $100 item at a 7% sales tax rate:
- Tax amount: $100 × 0.07 = $7.00.
- Total price: $100 + $7.00 = $107.00.
Backing out a pre-tax price from a total: if a receipt shows $107.00 total at the same 7% rate:
- Pre-tax price: $107.00 ÷ 1.07 = $100.00.
- Tax amount: $107.00 − $100.00 = $7.00.
$100 Item at 7%
- Pre-Tax Price: $100.00
- Tax Amount: $7.00
- Total Price: $107.00
Sales Tax vs. VAT
Both taxes ultimately fall on the end consumer, but they're collected very differently. US sales tax is single-stage: only the final retail sale to the consumer is taxed, and it's added on top at checkout, visible as a separate line. VAT is multi-stage: it's collected incrementally at every step of the supply chain (manufacturer, wholesaler, retailer), with businesses reclaiming the VAT they paid on their own inputs -- and it's baked into the price you see on the shelf. If you're working with a VAT-based price, use our dedicated VAT Calculator instead, since the framing (and typical rates) are meaningfully different.
Key Takeaways
- Sales Tax Is Added, Not Included: The price you see on the shelf in the US is the pre-tax price -- the final total is always higher.
- Divide, Don't Subtract, to Back Out Tax: To recover a pre-tax price from a known total, divide by (1 + rate) -- don't just subtract the rate as a percent of the total.
- Rates Are Local: There is no single US sales tax rate -- state, county, and city rates stack, so confirm your combined local rate.
- Not the Same as VAT: If you're pricing goods for a VAT jurisdiction, use the dedicated VAT Calculator -- the tax is collected differently and often at a materially different rate.