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Sales Tax Calculator

Sales tax is calculated by multiplying the pre-tax price by the tax rate: Tax = Price x (Rate / 100), and the total price equals the original price plus the tax. To reverse-calculate the pre-tax price from a total that already includes tax, divide by (1 + Rate / 100). For example, a $50 item with 8% sales tax has an estimated tax of $4.00 and a total of $54.00. Conversely, a $54 tax-inclusive price at 8% implies an original price of approximately $50.00 with $4.00 in tax. Enter values in either section below for instant results.

Quick Answer

A $50 item with 8% sales tax has an estimated tax of $4.00, for a total of $54.00. A $100 item at 6.25% tax has an estimated tax of $6.25, totaling $106.25.

Calculate Sales Tax

Reverse: Find Pre-Tax Price

Common Examples

Input Result
$50 item, 8% tax Estimated $4.00 tax, $54.00 total
$100 item, 6.25% tax Estimated $6.25 tax, $106.25 total
$250 item, 9.5% tax Estimated $23.75 tax, $273.75 total
$54 total (tax included), 8% tax Estimated original price $50.00, tax $4.00
$75 item, 7% tax Estimated $5.25 tax, $80.25 total

How It Works

Forward Calculation (Pre-tax price to total)

Sales Tax = Price x (Tax Rate / 100)

Total Price = Price + Sales Tax

Reverse Calculation (Total to pre-tax price)

Original Price = Total / (1 + Tax Rate / 100)

Tax Amount = Total - Original Price

The reverse formula works because if the total equals the price multiplied by (1 + rate), then dividing the total by that same factor recovers the original price. This is useful when a receipt shows only the final amount and you want to determine how much was tax.

Worked Example

Forward: For a $50 item at 8% sales tax: Tax = $50 x (8 / 100) = $50 x 0.08 = $4.00. Total = $50 + $4.00 = $54.00.

Reverse: For a $54 total that includes 8% tax: Original price = $54 / (1 + 0.08) = $54 / 1.08 = $50.00. Tax = $54 - $50 = $4.00.

Another example: A $250 purchase at 9.5% tax: Tax = $250 x 0.095 = $23.75. Total = $250 + $23.75 = $273.75.

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Frequently Asked Questions

How do I find my local sales tax rate?
Sales tax rates vary by state, county, and city. Most states publish their rates on their department of revenue website. Combined rates (state plus local) in the US typically range from 0% (in states like Oregon, Montana, and Delaware) to over 10% in some cities. Your receipt usually shows the tax rate applied.
Is sales tax applied before or after a discount?
In most jurisdictions, sales tax is applied to the discounted price, not the original price. If an item is marked down from $100 to $75, the tax is calculated on $75.
What is the difference between sales tax and use tax?
Sales tax is collected by the seller at the point of sale. Use tax is owed by the buyer when an item is purchased from an out-of-state seller who did not collect sales tax. The rate is typically the same as the local sales tax rate. Many states require residents to report and pay use tax on their income tax returns.
Are all items subject to sales tax?
No. Many states exempt certain categories from sales tax, including groceries, prescription medications, and clothing. The specific exemptions vary by state. This calculator applies a single tax rate to the full price and does not account for item-specific exemptions.
How does the reverse calculation work?
If the total price includes tax, dividing by (1 + rate) extracts the original pre-tax price. For example, if the total is $108 and the tax rate is 8%, the original price is $108 / 1.08 = $100, and the tax portion is $8.