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Sales tax
Add tax to a subtotal or work backward from a tax-inclusive total.
Formula: to add tax, multiply by (1 + tax rate). To remove included tax, divide by (1 + tax rate).
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Sales Tax Calculator
Sales tax rates vary by state, county, and city — and the receipt math is easy to get wrong. Add tax to a price, or work backward from a tax-inclusive total to find the original subtotal.
How the sales tax calculator works
Sales tax rates vary by state, county, and city — and the receipt math is easy to get wrong. Add tax to a price, or work backward from a tax-inclusive total to find the original subtotal.
The formula
tax = subtotal × (rate ÷ 100) · total = subtotal + tax
Worked example
A $95 purchase with 8% sales tax: the tax is 95 × 0.08 = $7.60, so the total is $102.60.
Where this comes in handy
- Shopping: know the out-the-door price before you buy.
- Receipts: separate the tax from the total for expense reports.
- Online orders: compare prices across states with different rates.
- Business: back out tax from gross figures for bookkeeping.
Sales Tax Calculator — frequently asked questions
How is sales tax calculated?
Multiply the pre-tax subtotal by the tax rate as a decimal, then add it to the subtotal. At 7%: total = subtotal × 1.07.
How do I remove sales tax from a total?
Divide the total by 1 plus the rate as a decimal. To strip 8% tax from $108: 108 ÷ 1.08 = $100.
Why do some online orders show no sales tax?
Sellers generally collect tax where they have a physical or economic presence. Marketplace rules now make most large sellers collect it in most states.
What is the difference between sales tax and VAT?
Sales tax is added at the final sale to the consumer. VAT (value-added tax) is collected at each stage of production, though the consumer ultimately bears it.
Are groceries taxed?
It depends on the state — many exempt unprepared food, some tax it at a reduced rate, and prepared food is usually taxed like restaurant meals.