Sales Tax Calculator
Add sales tax to a price, or extract the tax from a tax-inclusive total. Combine state, local and special-district rates into one combined rate. Enter your own rate — no local rate is assumed.
Written by the CalcBundle Research & Editorial Team · Reviewed by the Quality Review Team · Transparent formulas · results are estimates, not advice. · Updated
Sales tax
Enter a price and a tax rate greater than zero.
What a sales tax calculator does
A sales tax calculator turns a price and a tax rate into the exact tax and total — or works backwards from a receipt total to the pre-tax price. It sounds simple, and the arithmetic is, but two things trip people up: whether the price already includes tax, and what the correct combined rate actually is. This tool handles both directions and lets you build the combined rate from its parts, so whether you are a shopper checking a bill, a freelancer logging an expense, or a seller setting a price, you get a number you can rely on.
The sales tax formula
- Sales tax = price × tax rate
- Total = price + sales tax
- Reverse (tax-inclusive): pre-tax price = total ÷ (1 + rate), and tax = total − pre-tax price
The reverse calculation is the one most people get wrong. You cannot simply take the tax percentage off an inclusive total — subtracting 8% from $108 gives $99.36, not $100. Dividing by 1.08 is the correct way to recover the base price.
Worked example
A laptop is listed at $1,200 and the combined rate where you buy it is 8.25%. The tax is $1,200 × 0.0825 = $99, so the total at the register is $1,299. If instead you only have the $1,299 receipt total and want the pre-tax figure for an expense claim, divide by 1.0825 to get $1,200, leaving $99 of tax — exactly what the reverse mode returns.
Tax-inclusive vs tax-exclusive pricing
In the United States, shelf and online prices are almost always tax-exclusive: the sticker shows the base price and tax is added at checkout. In the UK, the EU and much of the world, consumer prices are tax-inclusive, with VAT or GST already baked in. Getting this wrong overstates or understates a price by the full tax amount, so pick the mode that matches how your price is quoted before you compare figures across regions.
How combined rates are built
The rate you pay is rarely a single state figure. It is usually the sum of a state rate, a county rate, a city rate and sometimes a special-district rate for transit, stadiums or local projects. That is why two towns in the same state can differ by a percentage point or more. Enter each component and the calculator adds them into one combined rate, so you can see how a local surcharge changes the final price.
What is and is not taxable
Sales tax applies to the item, not just the transaction. Many jurisdictions exempt or reduce tax on necessities such as groceries and prescription medicine, and the treatment of services, digital goods and shipping charges varies widely. Always use the rate and rules for the specific item — a mixed cart can carry more than one effective rate.
For sellers and online businesses
If you sell products, sales tax affects both compliance and pricing. Since the 2018 economic nexus rules, online sellers can owe tax based on where the buyer is located once they pass a state's sales or transaction threshold, so the applicable rate follows the customer, not your office. When you set prices, decide whether to absorb tax or add it, and check the effect on your margin with the product pricing calculator, profit margin calculator and e-commerce profit calculator.
Frequently asked questions
How do I calculate sales tax?
Multiply the pre-tax price by the tax rate to get the tax, then add it to the price for the total. For example, $100 at 8% is $8 of tax and $108 total. The calculator does this for a single item or a running subtotal.
How do I work out the price before tax from a total?
Divide the tax-inclusive total by 1 plus the rate. A $108 total at 8% is 108 ÷ 1.08 = $100 before tax, so the tax portion is $8. Switch the calculator to reverse (tax-inclusive) mode to do this automatically — useful for receipts and expense reports.
What is the difference between tax-inclusive and tax-exclusive pricing?
Tax-exclusive means the displayed price is before tax and tax is added at checkout — the norm in the United States. Tax-inclusive means the price already contains the tax, common in the UK, EU and many other regions. The calculator handles both: adding tax to an exclusive price or extracting it from an inclusive one.
Does the calculator know my local sales tax rate?
No — you enter the rate. Combined sales tax varies by state, county, city and special district, and the same purchase can be taxed differently a few miles away, so CalcBundle never guesses a rate. You can enter state, local and special-district components separately and the tool sums them.
Is everything subject to sales tax?
No. Taxability depends on the item and the jurisdiction — many places exempt or reduce tax on groceries, prescription drugs and some clothing, while services may or may not be taxed. Use the rate that applies to the specific item you are pricing.
What is sales tax nexus?
Nexus is the connection that requires a seller to collect sales tax in a state — created by a physical presence or, since 2018, by exceeding a state's economic sales or transaction threshold. Online sellers often owe tax based on the buyer's location (destination-based sourcing), which is why an accurate combined rate matters.
Related calculators
Product Pricing
Find a profitable selling price from costs, fees, ads and target margin.
E-commerce Profit
Calculate net profit, margin, break-even price and maximum ad spend for a product.
Profit Margin
Calculate profit, margin and markup from revenue and cost.
Discount
Work out sale price, savings and true stacked-discount percentages.
Disclaimer. This calculator provides estimates for informational purposes only. Results are based on the information you enter and the assumptions used by the calculator. Actual financial, tax, business valuation, lending, marketplace or investment outcomes may differ. Consider consulting a qualified professional for decisions involving significant amounts of money. Sales tax rates and taxability vary by jurisdiction and item. Enter the applicable rate; results are estimates.