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Sales Tax Calculator
Calculate sales tax for any rate — add tax to find the total price, remove tax to find the pre-tax price, or calculate the tax amount from any total. Essential for business invoicing, retail pricing, and tax planning.
Sales tax rates vary by US state from 0% (Oregon, Montana, New Hampshire, Delaware) to 9.5%+ (Tennessee, Louisiana). Local county and city taxes can add 2-5% more. This calculator handles all sales tax scenarios including adding, removing, and splitting tax from totals.
Formula
Tax Amount = Price × Tax Rate | Total with Tax = Price × (1 + Rate) | Pre-Tax Price = Total / (1 + Rate)
US Sales Tax Rates by State
Sales tax in the US is levied at state and local levels — there is no federal sales tax. Rates vary dramatically by location. Some states exempt groceries, clothing, or medicine from sales tax. Always verify current rates as they change frequently.
State
State Rate
Notes
Oregon, Montana, NH, Delaware
0%
No state sales tax
Hawaii
4%
Technically a GET (gross excise tax)
Colorado
2.9%
Low state rate but high local rates
California
7.25%
Plus local up to 10.75% total
Tennessee
7%
Highest average combined rate ~9.5%
Louisiana
4.45%
High local rates: avg 9.5% combined
New York
4%
NYC total: 8.875%
Texas
6.25%
Plus local up to 8.25%
Business Sales Tax Obligations
Businesses must collect and remit sales tax in states where they have "nexus" — physical presence (office, warehouse, employees) or economic nexus (sales above threshold, typically $100,000 or 200 transactions). The 2018 South Dakota v. Wayfair Supreme Court ruling allowed states to require remote sellers to collect sales tax. E-commerce businesses must track sales in each state where they cross nexus thresholds.
Tax-Exempt Categories
Many states exempt: groceries (most states), prescription medications (most states), agricultural supplies, manufacturing equipment, resale goods (with resale certificate), nonprofit purchases (with exemption certificate). Always check your state rules — a "grocery" exemption may not cover prepared foods, candy, or beverages. Misclassifying taxable vs non-taxable items is a common audit risk.
Frequently Asked Questions
Total = Price × (1 + Tax Rate/100). At 8% tax on $50: $50 × 1.08 = $54. Tax amount = $50 × 0.08 = $4. Alternative: calculate 10% (move decimal) then subtract 20% for 8%: 10% of $50 = $5, minus 20% = $4.00. For quick mental math: 8% ≈ 10% minus 2 per dollar.
Pre-tax price = Total / (1 + Tax Rate/100). If you paid $54 including 8% tax: $54 / 1.08 = $50. Tax amount = $54 - $50 = $4. Never just subtract the tax rate percentage from the total — $54 × 0.08 = $4.32, which is wrong (would give $49.68 pre-tax).
Five states have no state sales tax: Oregon, Montana, New Hampshire, Delaware, and Alaska. However, Alaska allows local governments to levy their own sales taxes — many Alaskan municipalities do. New Hampshire also has no income tax. These states fund government primarily through property taxes and other revenue sources.
Yes, since the 2018 Wayfair Supreme Court ruling, states can require out-of-state sellers to collect sales tax if they exceed economic nexus thresholds (typically $100,000 in sales or 200 transactions in the state annually). Marketplace facilitators like Amazon and Etsy collect sales tax on behalf of third-party sellers in most states.
The highest combined (state + local) sales tax rates are in Tennessee (~9.5% average), Louisiana (~9.5%), Arkansas (~9.4%), Washington (~9.3%), and Alabama (~9.2%). Some specific cities and counties can hit 10-12%+ with all local taxes combined. Tennessee also taxes groceries at a reduced rate of 4%.
Depends on the state. Some states tax certain services (SaaS, telecommunications, personal services). Most states do not tax professional services (legal, accounting, medical). States increasingly look to tax digital services and SaaS as traditional retail sales tax revenues decline. Check your specific state rules for service taxation.