Sales Tax Calculator
Calculator Use
Calculate sales tax and price after tax given your state's sales tax rate. Enter price before tax and tax percentage. Then find sales tax amount and total price after tax.
You can also calculate price before tax, find the original price and total price after tax, or calculate the sales tax rate.
How to Calculate Sales Tax
Multiply the price of your item or service by the tax rate to get the sales tax amount. If your tax rate is a percentage, divide that number by 100 to get tax rate as a decimal. Then use this number in the sales tax calculation.
Follow these steps to calculate sales tax:
- Find price before tax and sales tax percentage
- Divide tax percentage by 100 to get sales tax rate as a decimal
- Multiply price by this tax rate to get sales tax amount
- Add sales tax amount to original price to get total price after tax
For example, say you're buying a new coffee maker for your kitchen. The price of the coffee maker is $70 and the sales tax for your state is 6.5%.
- Price before tax is $70 and sales tax percentage is 6.5%
- Divide sales tax percentage by 100: 6.5 / 100 = 0.065
- Multiply original price by decimal tax rate: 70 * 0.065 = 4.55
You will pay $4.55 in sales tax on a $70 item - Add sales tax to price before tax to get total price: 70 + 4.55 = $74.55
Sales Tax Calculation Formulas
There are 5 variables in the sales tax calculation: price before tax, sales tax rate as a percentage, sales tax rate as a decimal, sales tax amount, and price after tax. You can use these formulas to find the value of any sales tax variable.
- Sales tax amount = original price × sales tax rate as a decimal
- Sales tax rate as a decimal = sales tax percent / 100
- Total price after tax:
- Total price after tax = price before tax + sales tax amount, or
- Total price after tax = price before tax + (price before tax × sales tax rate), or
- Total price after tax = price before tax × ( 1 + sales tax rate)
- Original price before tax = total price after tax / (1 + sales tax rate as a decimal)
- Sales tax amount = total price after tax - price before tax
- Sales tax rate % = (sales tax amount / price before tax) × 100
What is Sales Tax?
Sales tax is a tax on the sale of goods and services. It is a tax imposed by states to fund state government services like education and environmental programs, transportation and infrastructure, and healthcare and public service programs.
In the US and the District of Columbia all states except Alaska, Delaware, Montana, New Hampshire and Oregon impose a state sales tax when you buy items or pay for services. Alaska however does allow localities to charge local sales taxes as do many other states.
Some states do not charge sales tax on certain categories of items. In Massachusetts for example sales tax is not charged on regular grocery items. But you would pay sales tax if you bought a pre-made sandwich in a grocery store.
Many states have additional tax surcharges. In the hospitality industry it is common for restaurants and hotels to charge a tax rate higher than the regular state sales tax rate. This is sometimes known as a "tourist tax." Check with your state and locality for expected sales tax rates and potential "extra tax" rates.
Do You Need to Pay Sales Tax on a Vehicle or an Auto Loan?
Most likely, yes, you should expect to pay a sales tax when you buy a car. If you use an auto loan to purchase your vehicle, the sales tax is calculated on the price of the car and is rolled into your loan amount.
Some non-profit organizations may be exempt from sales tax, but individuals generally are not. If you have any questions about paying sales tax you should consult a tax professional who is familiar with your state's sales tax laws.
To calculate state sales tax, use tax and local sales tax see the CalculatorSoup® State and Local Sales Tax Calculator.
For a up-to-date state sales tax rates see State and Local Sales Tax Rates at taxfoundation.org.
For more detail including local tax rates or type of purchase see Wikipedia Tax Tables by State.