Sales Tax Calculator
Use this sales tax calculator to calculate sales tax, estimate sales tax before a purchase, add tax to a pre-tax price, or remove tax from a tax-inclusive total as a reverse sales tax calculator. Find the pre-tax amount or tax-inclusive total using any custom rate — no hard-coded local tax tables — so it works for any state, country or product category.
Last reviewed: 2026-07-29
Results
Enter your figures above and select Calculate. Results appear here with clear labels — never colour alone.
What is sales tax?
Sales tax is a consumption tax charged on the sale of goods and services, collected from the buyer at the point of purchase. The rate varies by country, state, city and sometimes by product category. In the US, sales tax is added at checkout; in many other countries, tax is built into the displayed price.
This sales tax calculator lets you calculate sales tax, estimate sales tax before a purchase, add tax to a pre-tax price, remove tax from a tax-inclusive total, and find the pre-tax amount or final price. Enter any custom rate and the tool works for any jurisdiction — it does not assume a particular state or country.
Sales Tax Formula
- Tax Amount = Price × Tax Rate ÷ 100
- Total Price = Price + Tax Amount
- Pre-Tax Price = Total ÷ (1 + Tax Rate ÷ 100)
The first two lines add tax to a pre-tax price. The third line reverses the calculation, dividing a tax-inclusive total by (1 + rate) to recover the pre-tax amount — you cannot simply subtract the tax percentage from a total.
How to Calculate Sales Tax
To calculate sales tax, multiply the pre-tax price by the tax rate divided by 100 to find the tax amount, then add it to the price.
- Price = $100, Tax rate = 8%
- Tax = $100 × 8 ÷ 100 = $8
- Final price = $100 + $8 = $108
The same arithmetic works for any rate and any price. See also the VAT calculator for value-added tax, or the discount calculator when a discount and tax apply together.
How to Estimate Sales Tax
To estimate sales tax before completing a purchase, take the listed price and the rate that applies where you are, then multiply: estimated tax = price × rate ÷ 100. For a $60 item in a 6.5% area, the estimated sales tax is about $3.90 and the final price about $63.90.
This calculator accepts any custom tax percentage and does not assume a particular state or country, so you can estimate sales tax for any location once you know the rate that applies.
Sales tax rates and rules vary by location and product type. Enter the applicable rate yourself and verify it with the relevant authority.
Sales Tax Included vs Sales Tax Excluded
Three figures describe any taxed sale, and keeping them straight is the key to correct sales tax math: the pre-tax price is the amount before tax; the tax amount is what the tax adds; the tax-inclusive total is what the customer actually pays.
Tax-exclusive pricing shows the pre-tax price and adds tax at checkout — common in the US. Tax-inclusive pricing builds the tax into the displayed total — common in many other countries. The effective tax rate (tax as a percentage of the total) is lower than the nominal rate (tax as a percentage of the pre-tax price), which matters when comparing the two pricing styles.
Common Sales Tax Calculation Mistakes
- Applying the percentage incorrectly. Multiply the price by the rate, do not add the rate to the price directly.
- Dividing instead of multiplying. To add tax you multiply; only when removing tax from a total do you divide by (1 + rate).
- Subtracting the tax percentage from an inclusive total. Removing 10% from $110 gives $99, but the correct pre-tax amount is $100 — divide by 1.10 instead.
- Using the wrong local tax rate. Sales tax varies by state, city and product. Enter the rate that actually applies to the sale.
- Forgetting exemptions or product-specific rules. Some goods are exempt or taxed at a reduced rate. Verify category rules with the relevant authority.
How to Add Sales Tax to a Price
Adding sales tax to a price means multiplying the pre-tax price by (1 + rate ÷ 100). Worked step by step:
- Price = $250, Tax rate = 7.5%
- Tax = $250 × 7.5 ÷ 100 = $18.75
- Total = $250 × (1 + 0.075) = $268.75
The tax amount ($18.75) and the total ($268.75) are the two figures you need for an invoice or receipt. The percentage calculator performs the same percentage-of-number math if you need it in another form.
Reverse Sales Tax: How to Remove Sales Tax From a Total
When a total already includes sales tax, a reverse sales tax calculation recovers the pre-tax amount by dividing by (1 + rate ÷ 100), not by subtracting the rate from the total.
- Total = $108, Tax rate = 8%
- Pre-tax amount = $108 ÷ (1 + 0.08) = $100
- Tax = $108 − $100 = $8
The tax ($8) is the same whether you add 8% to $100 or remove 8% from $108, because the percentages are consistent in both directions. Use the VAT calculator for the same operation on VAT-inclusive amounts.
Frequently asked questions
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Disclaimer
Results from this calculator are estimates for general information only and are not financial, accounting, tax, investment or legal advice. Verify important figures with a qualified professional. Read our full disclaimer.