Sales Tax Calculator
Calculate sales tax two ways: add tax to a known pre-tax price, or work backward from a tax-inclusive total to find the original price and tax amount.
The calculation, explained
Add mode: total = amount × (1 + rate). Extract mode: pre-tax price = amount ÷ (1 + rate), with the tax amount as the difference. See our Sales Tax on Invoices guide for how to find the correct rate for your state.
Sales tax calculation examples
| Scenario | Calculation | Result |
|---|---|---|
| Add 8.25% tax to $240 | $240 × 1.0825 | Total $259.80 (tax $19.80) |
| Price includes 7% tax: $107 | $107 ÷ 1.07 | Pre-tax $100.00 (tax $7.00) |
| Add 6% tax to $1,499.99 | $1,499.99 × 0.06 | Tax $90.00, total $1,589.99 |
| Combined rate: 4% state + 2.5% local on $80 | $80 × 6.5% | Tax $5.20, total $85.20 |
A common mistake when backing tax out of a tax-inclusive price is to subtract the percentage directly ($107 − 7% = $99.51). That’s wrong — always divide by (1 + rate).
How US sales tax rates work
- Combined rates: the rate you charge is usually the state rate plus county, city and special-district rates. Combined rates in some places exceed 9%.
- No statewide sales tax: Alaska, Delaware, Montana, New Hampshire and Oregon have no statewide sales tax (Alaska allows local sales taxes).
- Origin vs destination: most states use the buyer’s location (destination-based) to determine the rate; a few use the seller’s location for in-state sales.
- Nexus: since the 2018 Wayfair decision, remote sellers may have to collect tax in states where they exceed economic thresholds — often $100,000 in sales — even without a physical presence.
- Taxable items vary: groceries, clothing, digital products and services are taxed differently from state to state.
Our guide Sales Tax on Invoices: A US Guide explains how to show tax correctly on your invoices.
Using the calculator for VAT and GST
The same maths works for value-added tax and goods-and-services tax. Enter the standard rate for your country — for example 20% VAT in the UK, 19% in Germany, 10% GST in Australia, 5% GST in Canada (plus provincial tax in some provinces), or the GST slab that applies in India. Use “add tax” for net prices and “extract” for VAT-inclusive prices.
Common questions
Does this account for different tax rates by state or country?
No — enter the specific rate that applies to your transaction; rates vary widely by jurisdiction and even by product category.
What’s the difference between the two modes?
Add mode is for pricing you set before tax; extract mode is for figuring out the tax embedded in a price that’s already tax-inclusive.
How do I calculate sales tax?
Multiply the pre-tax price by the tax rate as a decimal. For 8% tax on $50: $50 × 0.08 = $4 tax, for a total of $54.
How do I remove tax from a total?
Divide the tax-inclusive total by (1 + tax rate). For $108 including 8% tax: $108 ÷ 1.08 = $100 before tax; the tax is $8.
Should sales tax be shown separately on an invoice?
Yes. Show the taxable subtotal, the rate and the tax amount separately — it’s clearer for the customer and often required by tax rules.
Turn this into a real invoice.
Use the full generator to build a proper, line-itemized invoice — free, no signup.