Sales Tax Calculator
Add tax to a price, or back out the pre-tax amount from a total.
Sales tax in the US
The US has no national sales tax. Instead, 45 states plus DC set their own rates (0–7.25%), layered on by counties and cities to produce combined rates ranging from 0% to over 10%. Five states (Alaska, Delaware, Montana, New Hampshire, Oregon) have no statewide tax at all.
For online orders, most states now use destination-based sourcing: tax is calculated on the buyer's zip code rates, not the seller's. The 2018 Wayfair Supreme Court decision ended the old 'physical presence' rule. Expect the tax-at-checkout you see to match your local combined rate in almost all cases.
Frequently asked questions
Why do sales tax rates vary so much?
US states set their own base rates (0–7.25%), counties add their own (0–3%), and cities layer on top (0–4%). Total combined rates range from 0% (NH, OR, DE, MT) to 10%+ (parts of LA, TN, CA). Five states have no statewide sales tax at all. Destination-based sourcing rules apply to online orders, using the buyer's zip code.
What's the difference between inclusive and exclusive tax?
Tax-exclusive pricing (standard in the US) shows the item price and adds tax at checkout: $10 + 8% tax = $10.80 total. Tax-inclusive pricing (common in the EU/UK as VAT) bakes tax into the sticker price: the same $10.80 total is labeled as $10.80 before you ever see the tax amount. This calculator handles both directions.
When do I owe use tax?
When you buy from an out-of-state seller who didn't charge sales tax. Technically you owe 'use tax' at your state's rate when you bring the item home. Most states have a line on the annual income tax return to report this. Enforcement is inconsistent but audits do happen, especially on big-ticket items (boats, vehicles, equipment).
Why is tax on services different from tax on goods?
Historically, sales tax targeted tangible goods. Services (haircuts, legal advice, streaming subscriptions) were often exempt. As the economy shifted service-heavy, states have gradually expanded tax to include digital services, SaaS, and professional services. Whether you owe depends on your state's specific rules.
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