How to use this calculator
- Choose whether to add tax to a price or remove tax from a total.
- Enter the amount.
- Enter the combined sales tax rate (state + county + city in the US).
Formula
Sales tax is a percentage of the pre-tax price. To remove tax from a total, divide by 1 plus the rate. Subtracting the rate from the total is a common mistake.
Tax = Price × rate
Total = Price × (1 + rate)
Price = Total / (1 + rate)
Example
- Price $100 with 8.25% tax: tax = $8.25, total = $108.25.
- Total $108.25 at 8.25%: price = 108.25 / 1.0825 = $100.00.
Frequently asked questions
What is my sales tax rate?
In the US, rates combine state, county and city taxes and vary by address. Five states (Alaska, Delaware, Montana, New Hampshire and Oregon) have no statewide sales tax, though Alaska allows local taxes.
Is sales tax the same as VAT?
Both are consumption taxes, but VAT is collected at each stage of production and is usually included in the displayed price. Use the VAT calculator for VAT.
Why does removing tax not subtract the percentage?
Because the tax was calculated on the smaller pre-tax price. 8.25% of $108.25 is more than the $8.25 that was actually added.