Add or remove sales tax from any price instantly
Mode
Currency
US State Rate
Tax at common rates
| Rate | Tax | Total |
|---|---|---|
| 5% | $5.00 | $105.00 |
| 6% | $6.00 | $106.00 |
| 7% | $7.00 | $107.00 |
| 7.5% | $7.50 | $107.50 |
| 8% | $8.00 | $108.00 |
| 8.5% | $8.50 | $108.50 |
| 9% | $9.00 | $109.00 |
| 10% | $10.00 | $110.00 |
Sales tax is a consumption tax imposed by government authorities on the sale of goods and services. In the United States, sales tax is collected at the state and local level — there is no federal sales tax. Rates vary significantly: five states (Oregon, Montana, New Hampshire, Delaware, and Alaska) have no statewide sales tax, while California tops the list with a base rate of 7.25% (with local additions that can push the combined rate above 10%).
Sales tax is added at the point of sale, meaning customers pay it directly to the retailer, who then remits it to the government. This differs from VAT (used in Europe), which is collected at each stage of the supply chain but results in the same effective burden for the end consumer.
Adding Tax
Tax = Price × Rate
Total = Price + Tax
Example: $80 × 8% = $6.40 tax → $86.40 total
Removing Tax
Pre-tax = Total ÷ (1 + Rate)
Tax = Total − Pre-tax
Example: $86.40 ÷ 1.08 = $80.00 pre-tax
The "remove tax" formula is useful when you have a receipt total and want to know the original pre-tax price — common for expense reports, accounting, or checking whether a retailer applied tax correctly.
The table below shows the statewide base rate and the average combined rate (base + local) for selected states. Always verify the exact rate for your city or county, as local additions vary widely.
| State | Base Rate | Avg Combined |
|---|---|---|
| Alabama | 4.00% | 9.24% |
| Arizona | 5.60% | 8.37% |
| California | 7.25% | 8.82% |
| Colorado | 2.90% | 7.76% |
| Florida | 6.00% | 7.02% |
| Georgia | 4.00% | 7.34% |
| Illinois | 6.25% | 8.83% |
| New York | 4.00% | 8.52% |
| Texas | 6.25% | 8.19% |
| Washington | 6.50% | 9.38% |
Source: Tax Foundation. Rates as of 2026. Local rates vary — confirm with your state's revenue department.
While sales tax and VAT (Value Added Tax) both tax consumption, they work differently. US sales tax is collected only at the final retail sale and is transparent on receipts. VAT — used across Europe, Canada (GST/HST), Australia (GST), and most of the world — is collected at every stage of production and built into prices consumers see.
The math for calculating how much tax is embedded in a price is identical for both: divide by (1 + rate) to find the pre-tax price. Our VAT Calculator handles European rates specifically.
Using only the state rate
Most US states allow counties and cities to add their own rates on top. Always look up the combined rate for your specific location.
Forgetting exempt items
Groceries, prescription drugs, and clothing are exempt from sales tax in many states. Misclassifying these can cause over- or under-charging.
Dividing instead of using the correct formula
To remove tax, you must divide by (1 + rate), not subtract the rate percentage directly. $100 total at 10% tax is $90.91 pre-tax, not $90.00.
Ignoring nexus for online sellers
Since the 2018 South Dakota v. Wayfair ruling, online sellers may owe sales tax in states where they have economic nexus (sales volume or transaction thresholds), not just physical presence.
How do I calculate sales tax?
Multiply the pre-tax price by the tax rate as a decimal. For example, a $50 item at 8% tax: $50 × 0.08 = $4.00 tax, so the total is $54.00.
How do I remove sales tax from a total?
Divide the total price by (1 + tax rate). For example, a $54 total at 8% tax: $54 / 1.08 = $50.00 pre-tax price.
Which US state has the highest sales tax?
California has the highest statewide base rate at 7.25%, but local additions can push combined rates above 10% in some cities. Tennessee and Louisiana also have high combined rates.
Which US states have no sales tax?
Five US states have no statewide sales tax: Oregon, Montana, New Hampshire, Delaware, and Alaska (though Alaska allows local taxes).
Is sales tax the same as VAT?
No. Sales tax is collected only at the final point of sale in the US. VAT (Value Added Tax) is used in Europe and many other countries, and is collected at each stage of production. The calculation formula is the same, but the administration differs.
Can I deduct sales tax on my US federal taxes?
Yes, if you itemize deductions. You can deduct either state and local income taxes OR state and local sales taxes (whichever is higher). This is especially useful in states with no income tax.
Why do receipts sometimes show a different tax than I expected?
Local taxes are often added on top of the state base rate. For example, California's statewide rate is 7.25%, but Los Angeles county adds 2.25% more, for a combined 9.5% rate.
Are groceries and medicine taxed?
Many US states exempt groceries and prescription medicine from sales tax, though rules vary widely by state. Prepared food is often taxed even in states that exempt groceries.
Tax addition uses the formula: Total = Price × (1 + Rate / 100). Tax removal uses: Pre-tax Price = Total / (1 + Rate / 100). US state base rates are sourced from the Tax Foundation's 2026 annual survey. Combined average rates include county and city averages weighted by population. Rates are for informational purposes only — consult your state revenue department or a tax professional for precise rates applicable to your transaction.
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