Sales Tax Calculator: Final Price and Tax Owed
A sales tax calculator adds a percentage tax to a pre-tax price to give the total a customer pays, or works backwards from a receipt total to find the tax component. In the United States the applicable rate is the combined state, county and city rate at the point of sale, so it varies street by street.
Sales tax is destination based in most states
For most retail and online sales, the rate that applies is the one where the buyer takes delivery, not where the seller is based. A handful of states use origin sourcing for in-state sales. Combined rates commonly land between 6% and 10%, and five states levy no statewide sales tax at all.
Sales tax versus VAT
- Sales tax is charged once, at the final retail sale, and is normally shown on top of the shelf price.
- VAT is collected at every stage of the supply chain and is usually included in the displayed price.
- Businesses buying for resale can present an exemption certificate to avoid sales tax on inputs.
Finding the tax inside a total
To split a receipt total into price and tax, divide the total by 1 plus the rate to get the pre-tax amount, then subtract it from the total. This is what you need for expense reports and bookkeeping when only the gross amount is recorded.
Key takeaways — Sales Tax Calculator
- Total = price × (1 + combined rate); tax = total − price.
- Use the buyer's location rate for most transactions.
- Groceries, medicine and clothing are taxed differently in many states.