Sales Tax Calculator — How to Calculate Tax on Any Purchase
Sales tax in the US is a consumption tax charged at the point of sale, ranging from 0% in five tax-free states to over 10% in some jurisdictions when state and local rates combine. Unlike VAT used in most other countries, US sales tax is added on top of the listed price, meaning the price you see on the shelf is not the price you pay at checkout.
How Sales Tax Works
Adding tax to a price uses the formula: Total = Price × (1 + Rate). A $100 item at 8.25% tax costs $108.25, with $8.25 going to tax. Extracting tax from a total uses the reverse: Pre-tax Price = Total ÷ (1 + Rate). A $108.25 receipt at 8.25% means $100 was the item and $8.25 was tax.
Combined rates are the sum of state, county, city, and special district taxes. Los Angeles has a 9.50% combined rate (7.25% state + 2.25% local). New York City charges 8.875% (4% state + 4.5% city + 0.375% MTA). Always check your specific jurisdiction's rate — it can vary even between neighboring cities.
Tax-Free States and Exemptions
Five states charge no sales tax: Alaska (though some cities charge local tax), Delaware, Montana, New Hampshire, and Oregon. If you live near a tax-free state, cross-border shopping can save significant money on large purchases. However, technically you may owe "use tax" in your home state on items bought elsewhere.
Common exemptions include groceries (exempt in most states), prescription medications (exempt everywhere), and clothing (exempt in PA, NJ, and a few others). Many states hold annual sales tax holidays for back-to-school shopping, hurricane preparedness, or energy-efficient appliances — check your state's revenue department for dates.
Use our sales tax calculator to quickly determine the tax on any purchase, find the pre-tax price from a receipt total, or compare effective rates across different states and jurisdictions.