How US Sales Tax Works
I built this calculator because working out sales tax by hand is surprisingly easy to get wrong. Unlike VAT in Europe, US sales tax is added on top of the listed price at the point of sale — so the sticker price you see is almost never what you actually pay. The rate varies not just by state but sometimes by city and county too.
Adding Tax vs Reverse-Calculating a Pre-Tax Price
Use this tool in two directions:
- Adding tax to a price:
Total = Price × (1 + Rate / 100). Useful when you want to know the final amount you will pay at checkout. - Finding the pre-tax price:
Pre-Tax = Total / (1 + Rate / 100). Useful when you already know what you paid and want to separate the tax component — handy for expense reports and accounting. - State rates range from 0% (Oregon, Montana, New Hampshire, Delaware, Alaska) up to 7.25% base rate in California, which can climb higher once local district taxes are added.
A few states have reduced rates or exemptions on essential goods like groceries and prescription medications, so the rate shown here reflects the general state rate and may not apply to every purchase. Use this as a quick estimate rather than a definitive figure for filing.
Frequently Asked Questions
Which states have no sales tax?
Five US states collect no statewide sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. Alaska allows local municipalities to levy their own sales taxes, so some areas of Alaska do charge tax even though there is no state rate.
Does sales tax apply to online purchases?
Yes, in most cases. Following the Supreme Court's 2018 ruling in South Dakota v. Wayfair, states can require out-of-state online retailers to collect sales tax if they exceed certain economic thresholds in the state. Most major e-commerce platforms now collect and remit sales tax automatically.
Is this suitable for filing tax returns?
This tool gives a quick estimate based on published state rates. Local surcharges, product-specific exemptions, and changes to rate tables are not always reflected in real time. This is an estimate — consult a tax professional for advice specific to your situation.