Sales Tax Calculator: Calculate Tax on Purchases
Calculate sales tax and final price for any purchase amount with our free online calculator. Support for all US states and custom tax rates.
Category: Financial
Note: Actual rates may vary due to local taxes. These are base state rates.
Frequently Asked Questions
How is sales tax calculated?
Sales tax is calculated by multiplying the purchase price by the sales tax rate. For example, if you buy an item for $100 and the sales tax rate is 7%, the sales tax would be $100 × 0.07 = $7, making the total price $107.
Which states have no sales tax?
Five states in the United States do not impose a state-level sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. However, some local jurisdictions in Alaska may still impose a local sales tax.
What items are typically exempt from sales tax?
Common sales tax exemptions include: grocery food items in many states, prescription medications, certain medical devices, certain agricultural supplies and equipment, and items purchased for resale by businesses. Exemptions vary significantly by state.
What's the difference between sales tax and VAT (Value Added Tax)?
Sales tax is typically collected only at the final point of sale to the consumer, while VAT (Value Added Tax) is collected at each stage of production and distribution. VAT is common in Europe and many other countries, while sales tax is more common in the United States.
How do I calculate sales tax backwards from a total price?
To calculate the original price before tax from a total price, divide the total price by (1 + tax rate as a decimal). For example, if the total price is $107 with a 7% tax rate, the original price would be $107 ÷ 1.07 = $100.