Finance
Sales Tax Calculator: How Sales Tax Works
Learn how sales tax is calculated and what items are taxable.
Sales tax is added at the point of sale. Rates vary by location.
Calculation
Tax = Price × Rate. Total = Price × (1 + Rate).
US Sales Tax
No federal tax. 45 states + DC have state taxes. Local taxes add more. Combined: 0-10%+.
Taxable vs Exempt
- Taxable: Electronics, vehicles, prepared food
- Exempt: Groceries, prescriptions (varies)
Reverse Calculation
Pre-tax = Total / (1 + Rate).
Frequently Asked Questions
Calculate sales tax?
Price × rate. 7% on $50 = $3.50 tax. Total = $53.50.
States with no sales tax?
Alaska, Delaware, Montana, New Hampshire, Oregon.
Online shopping taxed?
Since 2018 Wayfair ruling, most online retailers collect sales tax.