🏪 Finance · Sales Tax

How to Calculate
Sales Tax

Find the total price including sales tax for any US state. Simple formula, free calculator, all 50 state rates.

Sales Tax Formula

Two formulas you need:

Tax Amount = Price × (Rate ÷ 100)
Total Price = Price × (1 + Rate ÷ 100)
Price = original price before tax
Rate = sales tax percentage
Total = what you actually pay
💡 Example: $50 item with 8% tax → Tax = $50 × 0.08 = $4.00 → Total = $54.00

Sales Tax Calculator

Total Price with Tax
$107.99
Including sales tax
Tax Amount
$8.00
Pre-tax Price
$99.99

Step-by-Step Guide

1

Find the item price

Use the listed price before tax. In the US, prices are usually shown before tax (unlike Europe where VAT is included).

2

Find your state's sales tax rate

State rates range from 0% (Oregon, Montana, New Hampshire, Delaware, Alaska) to 7.25% (California). Local taxes may add more.

3

Calculate tax amount

Tax = Price × Rate ÷ 100. Example: $80 × 6% = $80 × 0.06 = $4.80 tax

4

Add to get total

Total = $80 + $4.80 = $84.80. Or shortcut: $80 × 1.06 = $84.80

Worked Examples

Electronics (California)

Laptop: $999
CA rate: 7.25%
Tax: $72.45
Total: $1,071.45

Clothing (New York)

Jacket: $120
NY rate: 4%
Tax: $4.80
Total: $124.80

Car (Texas)

Car: $25,000
TX rate: 6.25%
Tax: $1,562.50
Total: $26,562.50

No Tax State

Any item in Oregon
Rate: 0%
Tax: $0
No sales tax!

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Frequently Asked Questions

Which US states have no sales tax? ▾
Five states have no state sales tax: Oregon, Montana, New Hampshire, Delaware, and Alaska. However, Alaska allows local municipalities to charge sales tax.
What state has the highest sales tax? ▾
California has the highest state rate at 7.25%. When local taxes are added, some areas of Tennessee, Louisiana, and Arkansas can exceed 10% combined.
Is food taxed? ▾
It depends on the state. Many states exempt groceries from sales tax (e.g., Texas, California). However, prepared food from restaurants is usually taxable everywhere.
How is sales tax different from VAT? ▾
Sales tax is charged only at the final point of sale to the consumer. VAT (used in Europe and most of the world) is collected at every stage of the supply chain and is always included in the displayed price.