Math

Sales tax calculator.

Add tax to a price — or pull the tax back out of a tax-included total.

Adding and removing sales tax

Adding tax is a single step: multiply the price by the tax rate to get the tax, then add it on — $100 at 7.5% is $7.50 tax, for a $107.50 total. Going the other way is the part people miss. To find the pre-tax price hidden inside a tax-included total, you divide rather than subtract: total ÷ (1 + rate). So a $107.50 receipt at 7.5% breaks down to $107.50 ÷ 1.075 = $100 plus $7.50 tax. Subtracting 7.5% of $107.50 would give the wrong answer, because the tax was charged on the smaller pre-tax figure. US sales tax varies by state, county and city, so use your exact local combined rate.

A worked sales tax example

Say a jacket is listed at $80 and your combined local rate is 8.25%. Convert the rate to a decimal (8.25% = 0.0825), multiply to get the tax — $80 × 0.0825 = $6.60 — and add it on for a $86.60 total. To check a receipt that only shows the $86.60 total, back the tax out: $86.60 ÷ 1.0825 = $80.00 pre-tax, confirming $6.60 in tax. There is no single national US rate: five states (Delaware, Montana, New Hampshire, Oregon and Alaska) charge no statewide sales tax, while combined state-plus-local rates elsewhere run past 10%. Groceries, clothing and prescriptions are often taxed at a reduced rate or exempted, so a posted rate may not apply to every item on a bill.

FAQ

How do I back sales tax out of a total?
Divide the tax-included total by (1 + the tax rate as a decimal). A $107.50 total at 7.5% is $107.50 ÷ 1.075 = $100 before tax, leaving $7.50 of tax.
Why can't I just subtract the tax percentage from the total?
Because the tax was calculated on the pre-tax price, not the total. Subtracting the rate from the total over-counts; dividing by (1 + rate) gives the correct pre-tax amount.
Is sales tax calculated before or after a discount?
In most US states, tax is charged on the price after a store discount or coupon is applied, so a lower sale price means less tax. Manufacturer rebates are often treated differently and may be taxed on the full pre-rebate price — rules vary by state.
What tax rate should I enter — state or local?
Enter your combined rate: the state rate plus any county, city and special-district rates that apply at the point of sale. That combined figure is what appears on a receipt, and it can differ from one town to the next even within the same state.

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