Sales Tax Calculator (US, by State)

Sales tax = Price × Tax Rate. Example: $100 purchase at 8.25% tax rate. Tax = 100 × 0.0825 = $8.25. Total = $108.25. Tax rates vary by state and local jurisdiction. Some states have no sales tax (Oregon, Delaware, Montana, New Hampshire, Alaska — though Alaska has local taxes). California has the highest combined state rate. Some items are exempt (groceries, prescription medication, clothing in some states). Always check the actual rate for your zip code, since city/county taxes layer on top of state. The calculator handles sales tax for any state/local rate.

Total = Price + (Price × Tax Rate) = Price × (1 + Tax Rate). Example: $250 item at 7.5% tax. Total = 250 × 1.075 = $268.75. Tax portion = $18.75. For shopping budgets, factor sales tax into total spend, not just sticker price. A $500 budget at 8% tax really only buys $463 worth of items pre-tax. Online retailers calculate tax based on shipping address. Marketplace sellers (Amazon, eBay) collect tax automatically in most states. Always check receipts for accurate tax application. The calculator computes total purchase price including sales tax for any rate.

Reverse formula: Pre-tax Price = Total / (1 + Tax Rate). Example: $215 receipt total at 7.5% tax rate. Pre-tax = 215 / 1.075 = $200. Tax = $15. Useful for: separating tax from totals on receipts, business expense categorization (tax may be deductible separately), and verifying retailer math. Don't simply subtract the tax rate — that's wrong. Example: $215 minus 7.5% = $198.88 (incorrect). The right answer is $200. Always divide by (1 + rate). Important for invoicing and bookkeeping. The calculator does the reverse calculation accurately for any rate.

Five US states have no statewide sales tax: Oregon, New Hampshire, Montana, Delaware, and Alaska. Alaska allows local sales taxes — some cities charge up to 7.5%. The other four are fully sales-tax free. Some states exempt specific categories: clothing (Pennsylvania, New Jersey under thresholds), groceries (most states), prescription drugs (most states). High-tax states include California (state rate 7.25%, often 9-10%+ with locals), Tennessee, Arkansas, and Louisiana (state + local often 9-10%). Sales tax is regressive — affects lower-income households more proportionally. The calculator shows tax for any state rate including 0% scenarios.

Combined sales tax = state rate + county rate + city rate (sometimes + special district rate). Example: Los Angeles, CA — state 7.25% + LA county 1% + city 0% + district 1.25% = 9.5% combined. Texas — state 6.25% + city up to 2% = often 8.25%. Local rates can vary block by block within a city. Same item costs different totals across town. Online sellers use destination-based rules — tax is based on shipping address, not seller location. Combined rates can reach 10%+ in some California and Tennessee jurisdictions. The calculator handles full combined rates by zip code logic.

Sales tax is calculated on the discounted price, not the original price. Example: $100 item, 20% off — sale price $80. At 8% sales tax: tax = 80 × 0.08 = $6.40. Total $86.40. The discount comes off first, then tax applies to the lower amount. Coupons, store discounts, and promotional pricing all reduce the taxable base. However, manufacturer rebates received after purchase don't reduce tax — tax was calculated on the full price at point of sale. Always verify on receipt: discounted price × tax rate = tax charged. The calculator handles discount-then-tax sequencing correctly.

Online sales tax uses destination-based rules — tax is calculated based on the shipping address, not the seller's location. Example: ordering from a Texas seller shipping to California buyer — California sales tax applies. Since the 2018 Supreme Court Wayfair decision, states can require remote sellers to collect tax even without physical presence. Most online retailers (Amazon, Walmart, Target) collect automatically. Marketplace facilitators handle tax for third-party sellers. Smaller direct-to-consumer sites may not collect — use tax then becomes the buyer's responsibility (rarely enforced for individuals). The calculator computes online purchase totals with destination tax.