Skip to main content
Utulio
Finance Tools

Sales Tax Calculator

Add sales tax to any price, or reverse-calculate to find the pre-tax amount from a total. Quick-select common tax rates or enter any custom rate.

$
%

Pre-Tax Price

$100.00

Tax Amount

$8.25

Total (with Tax)

$108.25

Sales Tax: Add or Remove

This calculator handles both directions of sales tax. Add tax mode is useful when you see a listed price and want to know what you'll actually pay at checkout. Remove tax (reverse) mode is useful when you have a total receipt and need to separate the tax from the base price — common for expense reports and accounting.

The reverse calculation formula is: Net Price = Gross Price ÷ (1 + Tax Rate). This is different from simply subtracting the tax rate percentage from the gross — that would give the wrong answer. For example, removing 8.25% from $108.25 does not give $100 (it gives $99.31). The correct method divides by 1.0825.

Verification: $100 + 8.25% → tax $8.25, total $108.25. Reverse: $108.25 at 8.25% → net $100.00.

Sales Tax FAQs

How do I calculate sales tax?
To add sales tax: multiply the pre-tax price by the tax rate (as a decimal) to get the tax amount, then add it to the price. Formula: Tax = Price × Rate. For example, $100 × 0.0825 = $8.25 tax, so the total is $108.25.
How do I remove tax from a total price?
To reverse-calculate (extract tax from a gross price): divide the total price by (1 + tax rate). For example, $108.25 ÷ 1.0825 = $100.00 pre-tax. The tax amount is then $108.25 − $100.00 = $8.25. This calculator does this automatically with the "Remove Tax" mode.
What states have no sales tax?
Five U.S. states have no state sales tax: Oregon, Montana, New Hampshire, Delaware, and Alaska (though some Alaska localities charge local taxes). All other states have state sales taxes ranging from 2.9% (Colorado) to 7.25% (California), with many localities adding additional taxes on top.
What is the average U.S. sales tax rate?
The average combined state and local sales tax rate in the U.S. is approximately 7–8%. The highest average combined rates are in Tennessee (~9.5%), Louisiana (~9.5%), and Arkansas (~9.4%). Individual city rates can be even higher — some Chicago suburbs exceed 10%.
Is sales tax included in listed prices?
In the United States, prices are typically listed without sales tax (unlike many countries where tax is included). This is why you often pay more at the register than the listed price. E-commerce sales tax rules changed in 2018 (South Dakota v. Wayfair), requiring most online retailers to collect tax in states where they have customers.
Do businesses pay sales tax?
Generally, businesses do not pay sales tax on goods purchased for resale or for use in manufacturing — they collect sales tax from customers and remit it to the government. However, businesses do pay sales tax on items used internally (office supplies, equipment) that are not for resale. Rules vary by state and item type.

Related Tools

finance

Loan Payment Calculator

Calculate monthly loan payments, total interest, and full amortization schedule for any loan.

Open tool →
finance

Debt Payoff Calculator

Compare snowball vs avalanche strategies to become debt-free faster and save on interest.

Open tool →
finance

Compound Interest Calculator

See how your savings grow with compound interest and regular contributions over time.

Open tool →