Work out sales tax on a purchase, or back it out of a total that already includes it. State and local rates entered separately, because they stack. Free, no signup, nothing stored.
State base rates only. Counties and cities add their own on top, so enter the local portion separately. Rates change, so confirm the combined rate for your exact address before charging it.
Total with tax
Combined rate 8.25%
One rate field is not enough
Most sales tax calculators give you a single box. That is fine for a rough estimate and wrong for anything you are going to charge a customer.
The state sets a base rate. Then counties, cities, and in some places transit or stadium districts add their own on top. The rate that actually applies is the sum of all of them, and it depends on the exact address, not the state.
Texas is a clear example. The state rate is 6.25 percent, but local jurisdictions can add up to 2 percent, so the combined rate reaches 8.25 percent in most cities and stays at 6.25 in some unincorporated areas.
Enter the state rate and the local rate separately. The combined figure is what you charge.
Getting the arithmetic right
Multiply by the combined rate. A 100 dollar item at 8.25 percent carries 8.25 dollars of tax and costs 108.25 in total.
Divide by 1 plus the rate. A 108.25 total at 8.25 percent divides by 1.0825 to give 100. Subtracting 8.25 percent instead would give 99.32, which is wrong by 68 cents on a small sale and by a great deal more on a large one.
Round once, on the total tax, to two decimal places. Rounding each line item separately produces a figure that will not reconcile against your card processor.
Apply tax to the subtotal rather than per item, unless different items carry different rates. Groceries and prescription medicines are exempt or reduced in many states, so a mixed basket needs splitting.
What belongs on the receipt
Sales tax has to be visible on the document, not folded into the price, for three reasons. Business customers need it to claim the expense. Auditors need it to verify you collected the right amount. And customers in a state with tax holidays need to see what was charged.
- Subtotal before tax
- Tax amount on its own line, with the rate stated
- Total paid
- Your seller permit or resale number, where your state requires it
Our receipt generator produces all of these, with the tax rate and label configurable per document.
Common questions
How do I work out sales tax on a purchase?+
Multiply the price by the combined rate as a decimal. At a combined 8.25 percent, a 100 dollar item carries 8.25 dollars of tax and costs 108.25. The tool does this as you type, and splits the state and local portions so you can see where the money goes.
How do I back sales tax out of a total?+
Divide the total by 1 plus the combined rate. At 8.25 percent that means dividing by 1.0825. Subtracting 8.25 percent from the total gives the wrong figure, which is a common error when reconciling receipts. Switch the tool to Back out of total and it handles it.
Why are state and local rates separate?+
Because they are collected separately and they stack. Your state sets a base rate, then counties, cities, and sometimes special districts add their own on top. Two addresses in the same state can carry different combined rates, which is why one rate field is not enough.
Are the preset rates current?+
They are state base rates and they change. More importantly, they exclude the local portion, which in some jurisdictions is larger than the state rate itself. Look up the combined rate for the exact delivery address before charging a customer.
Which states have no sales tax?+
Delaware, Montana, New Hampshire, and Oregon have no statewide sales tax. Alaska has none at the state level but permits local sales taxes, so the rate is not always zero there. Select the No sales tax preset and add a local rate if one applies.
Is sales tax the same as VAT?+
No. Sales tax is charged once, at the final sale to the consumer. VAT is charged at every stage of the supply chain, with businesses reclaiming what they paid on inputs. If you are outside the United States you probably want the VAT and GST calculator instead.
Do I need to charge tax on shipping?+
It depends on the state. Some treat delivery charges as taxable, some do not, and some make it conditional on whether the shipping is separately stated. Check the rules for the state you are shipping to.
Is anything I enter stored?+
No. The calculation runs in your browser and nothing reaches our servers.