Our advanced Sales Tax Calculator helps shoppers and businesses accurately determine tax amounts on purchases. Calculate sales tax, pre-tax prices, and total costs instantly for any U.S. state or custom tax rate.
Calculator Tool
How to Use Our Sales Tax Calculator
Follow these simple steps to calculate sales tax for any purchase:
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Select Calculation Type
Choose between calculating from item price or total price.
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Enter Price
Input the item price before tax or the total price after tax.
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Set Tax Rate
Enter your local tax rate or select your state for automatic rates.
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View Results Instantly
See tax amount and final price calculated in real-time.
Why Use Our Sales Tax Calculator?
Our tool provides valuable insights for shoppers and businesses:
Accurate Budgeting
Know exactly how much you’ll pay before checkout.
Financial Planning
Plan business expenses and pricing strategies.
Tax Compliance
Ensure accurate tax collection for your business.
Understanding Sales Tax
Sales tax is a consumption tax imposed by state and local governments on the sale of most goods and some services. Unlike a national Value-Added Tax (VAT) seen in other countries, the U.S. sales tax system is a complex patchwork of thousands of different taxing jurisdictions.
- Variable Rates: Tax rates vary significantly not just by state, but also by county, city, and special tax districts. This is why the tax on an item can differ from one town to the next.
- Tax-Exempt Items: To reduce the tax burden on necessities, many states exempt certain items like groceries, prescription drugs, and some types of clothing.
- Destination-Based Sourcing: For online and shipped orders, the sales tax rate is typically based on the buyer’s shipping address (“destination”), not where the seller is located.
- Economic Impact: Sales tax is a major source of revenue for state and local governments, funding public services like schools, roads, and emergency services.
2024 Sales Tax Rates by State (Examples)
| State | State Rate | Avg. Local Rate | Combined Rate |
|---|---|---|---|
| Tennessee | 7.00% | 2.55% | 9.55% |
| Arkansas | 6.50% | 2.94% | 9.44% |
| Washington | 6.50% | 2.84% | 9.34% |
| California | 7.25% | 1.57% | 8.82% |
| New York | 4.00% | 4.52% | 8.52% |
| Texas | 6.25% | 1.95% | 8.20% |
| Florida | 6.00% | 1.02% | 7.02% |
| Illinois | 6.25% | 2.57% | 8.82% |
Note: Rates are based on data from early 2024 and are subject to change. Average local and combined rates are weighted averages.
Exploring Different Types of Sales Tax
The rate you pay on a purchase is often a combination of different taxes levied by various government bodies. Understanding these can clarify why rates differ so much. Here’s a typical breakdown:
- State Sales Tax: This is the base rate set by the state legislature. It applies statewide, though some goods or services may be exempt.
- Local Sales Tax (City, County): On top of the state tax, many cities and counties impose their own sales tax to fund local initiatives. This is the most common reason for rate variations within a single state.
- Special Purpose District (SPD) Tax: These are taxes for specific services or projects, such as public transportation, stadium construction, or library services. They apply only within the boundaries of that district.
Our calculator helps you account for the combined rate, but it’s useful to know that your final tax bill is supporting services at multiple levels of government.
Sales Tax for Online & Small Businesses
Navigating sales tax is a critical task for any business, especially with the rise of e-commerce. The rules are governed by a concept called “nexus.”
Understanding Economic Nexus
Nexus is a connection between a taxing jurisdiction (like a state) and a business that obligates the business to collect and remit sales tax there. Historically, this required a physical presence.
- Physical Presence Nexus: Having an office, warehouse, employee, or storing inventory in a state creates a physical nexus.
- Economic Nexus: Following the South Dakota v. Wayfair Supreme Court ruling, states can now require businesses to collect sales tax if they meet certain sales revenue or transaction volume thresholds within the state, even with no physical presence.
Because of economic nexus, online sellers may need to register and collect sales tax in dozens of states. This makes a reliable tax calculator an indispensable tool for ensuring compliance and accurate pricing.
States With No Sales Tax
A handful of states stand out for not having a statewide sales tax, which can lead to significant savings for consumers in those areas. As of 2024, the five states with no statewide sales tax are:
- Alaska
- Delaware
- Montana
- New Hampshire
- Oregon
Important Note: While Alaska has no state sales tax, it allows municipalities to charge local sales taxes. Therefore, you may still pay sales tax in some Alaskan cities like Juneau or Anchorage. The other four states (often called the “NOMAD” states) have no local sales taxes either.
Sales Tax Calculator FAQs
Sales tax is calculated by multiplying the item price by the sales tax rate (which must be converted to a decimal). The formula is: Sales Tax = Price × (Tax Rate / 100). For a $100 item with a 7.5% tax rate: $100 × 0.075 = $7.50 tax. The total price would be $107.50.
To find the original price before tax, you need to divide the total price by 1 plus the tax rate (as a decimal). The formula is: Original Price = Total Price / (1 + (Tax Rate / 100)). For a $107.50 total with 7.5% tax: $107.50 ÷ 1.075 = $100. Our calculator can do this automatically when you select the “Total Price” tab.
Sales tax rates vary because they are set by a combination of state, county, and local governments. Each jurisdiction can add their own tax on top of the state rate to fund local services, leading to different combined rates even within the same state.
Yes, almost always. Following the 2018 Supreme Court decision in South Dakota v. Wayfair, online retailers must collect sales tax in states where they have “economic nexus” (a certain threshold of sales or transactions). This means most online purchases are now subject to sales tax based on the buyer’s shipping address.
Tax-exempt items vary by state but often include necessities to reduce the tax burden on low-income individuals. Common examples include unprepared food (groceries), prescription medications, some medical devices, and agricultural supplies. Some states also exempt clothing and footwear up to a certain price.
Sales tax rates can change frequently, especially at the local level. States typically update rates annually or biannually, often aligning with the start of a new calendar year (January 1) or fiscal year (July 1 or October 1). Local city, county, and district tax rates can change more often, sometimes quarterly.
Sales tax is collected by the seller at the point of sale. Use tax is a tax on the use, storage, or consumption of an item when sales tax was not paid. It’s typically owed when you buy something from an out-of-state seller who doesn’t collect tax for your state. The consumer is responsible for remitting use tax directly to their state’s tax agency. The rates are usually identical.
A sales tax holiday is a limited-time period when states allow consumers to purchase specific items without paying sales tax. These events are most common in late summer for back-to-school supplies, clothing, and computers. Some states also have holidays for storm preparedness supplies or energy-efficient appliances.
Sales tax is a consumption tax applied to the purchase of goods and services. Income tax is a direct tax levied on the income or profit of individuals and corporations. In short, sales tax is based on what you spend, while income tax is based on what you earn.
Sales tax is a retail tax, charged only on the final sale to the consumer. A Value-Added Tax (VAT), common in Europe and other regions, is collected at every stage of the production and distribution chain. While the end consumer bears the cost in both systems, the collection method is fundamentally different. Sales tax is generally simpler for businesses not at the final retail stage.