Sales Tax Calculator
Result:
Calculate sales tax and total purchase prices with our comprehensive sales tax calculator. Perfect for shopping, business calculations, and tax planning.
What is Sales Tax?
Sales tax is a consumption tax imposed by governments on the sale of goods and services. It's typically calculated as a percentage of the purchase price and added to the total cost.
Sales Tax Calculation Formula
Tax Amount = Price Before Tax × (Tax Rate ÷ 100)Total Price = Price Before Tax + Tax Amount
US State Sales Tax Rates (2024)
Highest Tax States
Tennessee: 9.55%
Arkansas: 9.53%
Louisiana: 9.52%
Washington: 9.23%
Alabama: 9.22%
Combined state and local rates
Lowest/No Tax States
Oregon: 0% (No state sales tax)
New Hampshire: 0% (No state sales tax)
Montana: 0% (No state sales tax)
Delaware: 0% (No state sales tax)
Alaska: 1.76% (Local taxes only)
Some have local taxes
Sales Tax Examples
Purchase Example
Scenario: Buying a $150.00 item with 8.25% sales tax
Calculation:
- Tax Amount: $150.00 × (8.25 ÷ 100) = $12.38
- Total Price: $150.00 + $12.38 = $162.38
- Tax as % of Total: ($12.38 ÷ $162.38) × 100 = 7.62%
Result: You pay $162.38 total ($12.38 in tax)
Common Tax Rate Ranges
Low Tax Rate
0-5%
States with low or no sales tax
Consumer-friendly ratesMedium Tax Rate
6-8%
Average state sales tax rates
Moderate tax burdenHigh Tax Rate
9%+
States with high combined rates
Higher cost jurisdictionsSales Tax Calculation Table
| Price Before Tax | 5% Tax | 7% Tax | 8.25% Tax | 10% Tax |
|---|---|---|---|---|
| $20.00 | $21.00 | $21.40 | $21.65 | $22.00 |
| $50.00 | $52.50 | $53.50 | $54.13 | $55.00 |
| $100.00 | $105.00 | $107.00 | $108.25 | $110.00 |
| $250.00 | $262.50 | $267.50 | $270.63 | $275.00 |
| $500.00 | $525.00 | $535.00 | $541.25 | $550.00 |
Types of Sales Tax
State Tax
- Set by state government
- Ranges from 0% to 7.25%
- Applied uniformly statewide
- Base rate for calculations
- Revenue for state programs
Local Tax
- Set by cities and counties
- Added to state tax rate
- Can vary by location
- Funds local services
- Creates combined rate
Special Tax
- Specific items or services
- Luxury tax on high-end items
- Sin tax on alcohol/tobacco
- Hotel occupancy tax
- Additional special rates
International Tax Systems
European Union: 15-27% VAT rates
United Kingdom: 20% standard VAT
Canada: 5% GST + provincial taxes
Australia: 10% Goods and Services Tax
Key Feature: Tax included in displayed prices
India: 5%, 12%, 18%, 28% GST tiers
New Zealand: 15% GST
Singapore: 7% GST (increasing to 8% in 2023)
System: Comprehensive tax on consumption
Tax-Exempt Purchases
Generally Tax-Free
- Prescription medications
- Groceries (in many states)
- Medical equipment
- Educational materials
- Non-profit organization purchases
Varies by State
- Clothing and footwear
- Food and beverages
- Internet purchases
- Services vs. goods
- Digital downloads
Business Applications
- Retail Pricing: Determine final customer price
- Budget Planning: Account for tax in purchase budgets
- Tax Compliance: Calculate owed sales tax
- Competitive Analysis: Compare after-tax prices
- Financial Planning: Budget for major purchases
Online Shopping Considerations
E-commerce Tax Rules
- Nexus Laws: Physical presence triggers tax
- Economic Nexus: Sales volume thresholds
- Marketplace Laws: Platform collects tax
- Use Tax: Consumer responsibility if not collected
Shopping Tips
- Check if seller charges tax in your state
- Factor tax into price comparisons
- Understand return policies with tax
- Keep receipts for tax records
Tax Calculation Tips
- Round Carefully: Tax calculations often require rounding to nearest cent
- Check Receipts: Verify tax calculations on purchases
- Know Exemptions: Understand what's tax-free in your area
- Budget Including Tax: Always factor tax into purchase planning
- Business Records: Track tax paid for business expense deductions
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