Sales Tax Calculator
Sales Tax Calculation
| State | State Tax Rate | Avg. Local Tax | Combined Rate |
|---|
Understanding Sales Tax in the United States
Sales tax is a consumption tax imposed by state and local governments on the sale of goods and services. Unlike VAT (Value Added Tax) used in many other countries, sales tax in the U.S. is only collected at the final point of purchase by the end consumer.
Key Facts About U.S. Sales Tax
- 45 states and the District of Columbia collect statewide sales taxes
- 5 states (Alaska, Delaware, Montana, New Hampshire, and Oregon) have no statewide sales tax
- Local sales taxes are collected in 38 states
- The highest combined sales tax rate is in Tennessee at 9.55%
- The lowest is in Alaska at 1.76% (local taxes only)
How Sales Tax Rates Are Determined
Sales tax rates are composed of three potential components:
- State Sales Tax: Set by the state government and applies statewide
- Local Sales Tax: Imposed by counties, cities, or special districts
- Special District Taxes: Temporary or permanent taxes for specific purposes like transportation or tourism
Common Sales Tax Scenarios
Online Shopping and Sales Tax
Since the Supreme Court's 2018 South Dakota v. Wayfair decision, online retailers are required to collect sales tax in states where they have economic nexus, even if they don't have a physical presence there. This means:
- Major online retailers now collect sales tax in most states
- Tax is calculated based on the delivery address
- Some marketplaces (like Amazon) collect and remit tax for third-party sellers
Tax-Exempt Purchases
Certain items are often exempt from sales tax, including:
- Groceries (in many but not all states)
- Prescription medications
- Clothing (in some states up to a certain price point)
- Manufacturing equipment
- Items purchased for resale
About the Sales Tax Calculator
Our Sales Tax Calculator helps you determine the total cost of an item including sales tax, with the option to use default state tax rates. Whether you're budgeting for a purchase, comparing costs between states, or verifying a receipt, this tool provides accurate calculations instantly.
Key Features
- Simple Calculation: Quickly determine total cost including tax with our intuitive interface
- State Tax Rates: Preloaded with current state sales tax rates updated for 2024
- Custom Rates: Enter any tax rate manually for precise calculations
- State Comparison: View and compare tax rates for all 50 states at a glance
- Mobile Friendly: Works seamlessly on all devices from smartphones to desktops
- No Registration Required: Instant access with no sign-up needed
How Sales Tax is Calculated
Total Price = Item Price + Sales Tax Amount
For example, a $100 item with a 7.5% sales tax would calculate as:
$100 × (7.5 ÷ 100) = $7.50 tax
$100 + $7.50 = $107.50 total
Who Uses This Tool?
Shoppers: Calculate total cost before checkout to avoid surprises at the register.
Business Owners: Determine correct pricing and tax collection amounts for your products.
Accountants: Verify sales tax calculations and prepare accurate financial reports.
Students: Learn about sales tax mathematics and real-world financial applications.
Travelers: Compare tax rates between states when planning purchases or relocating.
E-commerce Sellers: Determine appropriate tax rates for different customer locations.
Sales Tax vs. Other Types of Taxes
It's important to distinguish sales tax from other similar-sounding taxes:
| Tax Type | Collected By | Applied To | Rate Structure |
|---|---|---|---|
| Sales Tax | State & Local | Retail sales | Percentage of sale price |
| Use Tax | State | Out-of-state purchases | Same as sales tax |
| Excise Tax | Federal & State | Specific goods (gas, tobacco, etc.) | Per unit or percentage |
| VAT | National (not in U.S.) | Value added at each production stage | Percentage of value added |