Sales Tax Calculator 🛒
Calculate sales tax for all 50 US states with 2024 rates. Find tax amount, total price after tax, or reverse-calculate the pre-tax price from a total.
Calculate Sales Tax
Select a state and enter an amount to calculate sales tax
States with No Sales Tax
Five states have 0% state sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. However, Alaska and Montana allow local jurisdictions to levy their own sales taxes.
Highest Sales Tax States (State + Average Local, 2024)
| State | State Rate | Avg Local | Combined Avg |
|---|---|---|---|
| Tennessee | 7.0% | 2.55% | 9.55% |
| Louisiana | 4.45% | 5.0% | 9.45% |
| Arkansas | 6.5% | 2.93% | 9.43% |
| Washington | 6.5% | 2.67% | 9.17% |
| Alabama | 4.0% | 5.22% | 9.22% |
| Oklahoma | 4.5% | 4.47% | 8.97% |
| California | 7.25% | 1.55% | 8.80% |
How Sales Tax Works in the USA
- Sales tax is collected at the point of sale and remitted to the state/local government
- The US has no federal sales tax — it's entirely state and local
- Online purchases: after the 2018 Supreme Court ruling (South Dakota v. Wayfair), online retailers must collect sales tax in states where they have "economic nexus"
- Groceries, prescription drugs, and medical equipment are often exempt from sales tax
- Some states have sales tax holidays (e.g., back-to-school weekends)
Exclusive vs Inclusive Tax
- Exclusive (most common in the US): Price shown does NOT include tax. Tax is added at checkout.
- Inclusive (common in Europe/India): Price shown already includes tax. Use "reverse" mode to extract the base price.
How to Calculate Sales Tax
Adding tax (exclusive): Tax = Price × (Rate ÷ 100), and Total = Price + Tax. For a $120 item at an 8.5% combined rate: tax = 120 × 0.085 = $10.20, so you pay $130.20.
Extracting tax (inclusive): Base Price = Total ÷ (1 + Rate ÷ 100), and Tax = Total − Base. If a receipt total is $130.20 including 8.5% tax: base = 130.20 ÷ 1.085 = $120, so the embedded tax is $10.20. This reverse calculation is essential for bookkeeping when you only have the final total.
What Is Economic Nexus?
Before 2018, online sellers only had to collect sales tax in states where they had a physical presence. The Supreme Court's South Dakota v. Wayfair decision created economic nexus: a seller must now collect a state's sales tax once their sales there cross a threshold (commonly $100,000 in sales or 200 transactions per year), even with no physical store. This is why online purchases are now taxed in most states, and why sellers must track thresholds across every state they ship to.
Sales Tax vs VAT — What's the Difference?
US sales tax is charged only once, at the final retail sale to the consumer. A Value Added Tax (VAT), used across Europe, India (as GST), and much of the world, is collected at every stage of production, with businesses claiming credit for the tax they already paid on inputs. The end consumer ultimately bears a similar total, but VAT is built into the displayed price, whereas US sales tax is usually added at checkout.
Frequently Asked Questions — Sales Tax Calculator
Five states have no state sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. However, Alaska allows local jurisdictions to levy sales taxes, so some Alaskan cities do charge sales tax. Delaware is the most popular for tax-free shopping. These states make up revenue through other taxes like income or property taxes.
State sales tax is set by the state government and applies uniformly across the state. Local sales tax is an additional rate levied by counties, cities, or special districts on top of the state rate. The total rate you pay is state + local combined. For example, California's state rate is 7.25%, but Los Angeles County adds 2.25% for a combined 9.5% rate.
Reverse (or "back-calculating") sales tax finds the pre-tax price when you only know the final total. Formula: Pre-tax price = Total price ÷ (1 + tax rate). For example, if you paid $108.00 and the tax rate is 8%, the pre-tax price is $108 ÷ 1.08 = $100. This is useful for accounting, expense reports, and price comparisons.
No. Sales tax is collected only at the final point of sale to the consumer. VAT (Value Added Tax), used in Europe and most countries, is collected at every stage of the supply chain — manufacturers, wholesalers, and retailers all pay VAT on their added value. The end consumer pays roughly the same total, but VAT is embedded in the price, while US sales tax is added at checkout.
Common exemptions vary by state but often include: groceries (food for home consumption), prescription medications, medical devices, some clothing (in states like New York under $110 per item), and agricultural supplies. Some states also exempt digital goods or provide back-to-school tax holidays. Always check your specific state's exemption rules.