Finance Sales tax calculator
Add sales tax to a price or strip it back out of a total, with the arithmetic that catches almost everyone shown explicitly.
Enter the pre-tax price to get the total you will be charged.
Total to pay
$270.63
Sales tax of $20.63 at 8.250%.
- Net price
- $250.00
- Sales tax
- $20.63
- Gross total
- $270.63
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Cite this page
Reembun. (2026, July 28). Sales tax calculator. https://reembun.com/sales-tax-calculator
How to use it
Pick a direction
Add tax to work forward from a net price, or Remove tax to work back from a total you have already been charged.
Enter the amount and the rate
The rate box takes any percentage, so a local or combined rate works as well as a national one.
Read the split
Net, tax and gross are listed separately, which is exactly what an invoice or an expense claim needs.
The two directions
Adding tax to a net price:
tax = net × rate
gross = net + tax = net × (1 + rate)Removing tax from a gross total:
net = gross ÷ (1 + rate)
tax = gross − netThe second is where mistakes cluster.
Divide, do not subtract
If a $270.63 receipt includes 8.25% tax, the pre-tax price is not $270.63 minus 8.25%.
| Method | Result | Correct? |
|---|---|---|
| Subtract 8.25% of the gross | $248.30 | No |
| Divide by 1.0825 | $250.00 | Yes |
The error is $1.70 here, and it scales with the amount, about 0.68% of the transaction at this rate. On a $50,000 invoice the same mistake is over $340.
The reason is that the 8.25% was calculated on the smaller net figure, so it is a smaller share of the larger gross figure. Working backwards has to undo the multiplication, not subtract the same percentage.
Worked examples
Adding tax. A $250 item at 8.25%: tax is $20.63, total is $270.63.
Removing tax. A $432 total at 8%: net is $400, tax is $32.
Finding the rate. Paid $54 on a $50 item: $4 ÷ $50 = 8%.
Combined US rates
Sales tax in the US is layered: state, then county, then city, then special districts. The combined rate is what appears on the receipt.
| State | State rate | Typical combined |
|---|---|---|
| California | 7.25% | 8.85% |
| Texas | 6.25% | 8.20% |
| New York | 4.00% | 8.53% |
| Florida | 6.00% | 7.00% |
| Illinois | 6.25% | 8.86% |
| Washington | 6.50% | 9.38% |
| Tennessee | 7.00% | 9.55% |
| Louisiana | 4.45% | 9.56% |
| Delaware, Montana, New Hampshire, Oregon | none | none |
Rates change and vary by locality within a state, so treat these as orientation rather than authority. Alaska has no state sales tax but permits local ones.
Where the tax applies
Destination versus origin. Most states tax at the buyer’s location, which is why an online order’s tax rate depends on the shipping address. A few use origin sourcing.
Exemptions. Groceries, prescription medicine and clothing are exempt or reduced in many states, and the details differ enough that a single “state rate” is only ever an approximation for a mixed basket.
Nexus. Since South Dakota v. Wayfair (2018), states can require out-of-state sellers to collect sales tax once they pass a sales or transaction threshold. If you sell across state lines, thresholds rather than physical presence are what determine your obligations.
These figures are for estimating, not for filing. Confirm the applicable rate and exemptions with your state revenue department or an accountant before relying on a number for a return.
Common questions
How do I remove sales tax from a total?
Divide by one plus the rate, never subtract the rate. To strip 8.25% from a $270.63 total, divide by 1.0825 to get $250. Subtracting 8.25% of $270.63 gives $248.30, which is $1.70 short, and the error grows in proportion to the amount.
Why does my receipt total differ by a cent?
Rounding. Retail systems usually compute tax on the whole basket and round once, while a line-by-line calculation rounds several times. Either can be a cent out from the other. For invoicing, follow whatever your jurisdiction specifies rather than assuming.
Is sales tax the same as VAT?
No, though the arithmetic is identical. US sales tax is charged once, at the final retail sale. VAT is charged at every stage of production with businesses reclaiming what they paid, so the tax reaches the same total but is collected incrementally. Use the VAT calculator if your invoice says VAT.
Which rate applies to me?
In the US, the combined state, county, city and district rate at the point of delivery, which is often the buyer's address, not the seller's. Combined rates exceed 10% in parts of Louisiana, Tennessee and Alabama. Check your state revenue department for the current figure.
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