Sales Tax Calculator
Tired of doing complex math just to figure out the final cost of a purchase? Our free online calculator gives you an instant and accurate breakdown of any transaction. Whether you’re a shopper trying to stick to a budget, a business owner creating an invoice, or just curious about the final price, this tool simplifies the process.
Just enter the purchase amount and the applicable tax rate to see the tax amount and the total price instantly.
What Is Sales Tax? A Quick Guide
A sales tax is a type of consumption tax imposed by a government on the sale of goods and services. When you buy a product at a retail store or online, a percentage of that sale is collected by the seller and sent to the government.
This revenue is a critical source of funding for state and local governments. It pays for essential public services like:
Roads and infrastructure
Public schools
Police and fire departments
Parks and public transportation
Unlike a national VAT (Value Added Tax) seen in other countries, the United States has a complex system with rates that vary dramatically by state, county, and even city.
Understanding State, County, and City Tax Rates
Finding the correct rate to enter into the calculator is the most important step. In the U.S., your total rate is often a combination of multiple jurisdictions:
State Rate: A baseline tax set by the state government. (Some states, like Oregon and Montana, have no statewide rate).
County Rate: An additional percentage added by the county.
City/District Rate: A further percentage that can be added by a specific city or special-purpose district.
To get an accurate calculation, you must add these percentages together. For example, if your state rate is 6%, your county adds 1%, and your city adds 0.5%, your total rate to enter would be 7.5%.
Need to Find the Price Before Tax? Use Our Reverse Calculator
Have you ever looked at a receipt and wondered what the original price was before the government’s share was added? Our tool works in reverse, too!
Simply enter the Total Price (the final amount you paid) and the Tax Rate (%) used for the transaction. Our reverse sales tax calculator will instantly work backward to show you the Original (Pre-Tax) Price and the amount of tax that was paid. This is perfect for expense reports and budgeting.
Frequently Asked Questions (FAQ)
What is the formula to calculate sales tax?
The formula is simple:
To find the tax amount: Pre-Tax Price x (Tax Rate / 100) = Tax Amount
To find the total price: Pre-Tax Price + Tax Amount = Total Price
Our calculator does this math for you automatically.
How do I calculate tax on an online purchase?
The process is the same. Online retailers are now required to collect tax based on the “ship-to” address. Use the combined local rate of where you are receiving the package to get an accurate total for your e-commerce purchase.
How do I find my local tax rate?
The most reliable way is to check your state’s Department of Revenue website. They provide up-to-date information on state, county, and city rates. Searching for “[Your City] and [Your State] sales tax rate” is also effective.
Are all items taxable?
No. Most states have tax exemptions for certain categories of goods. Common exemptions include groceries (unprepared food), prescription medications, and some types of clothing. These rules vary significantly by state.
What is the difference between sales tax and use tax?
The seller collects a sales tax at the point of sale. A use tax is paid directly by the consumer on taxable items when the seller does not collect tax (for example, when buying from an out-of-state vendor who does not charge it). The rate is typically the same.
How to Use the Allsums Sales Tax Calculator
The Sales Tax Calculator is a versatile tool designed to help businesses and individuals calculate sales tax and determine taxable values for transactions. It supports calculations based on either the purchase amount or the total invoice value. Follow these steps to use the calculator:
Step 1: Choose Your Input
Option 1: Purchase Amount
- Input the base price of the product or service before tax in the “Purchase Amount (₹)” field.
- For example:
- If the purchase amount is ₹5000, enter
5000.
- If the purchase amount is ₹5000, enter
Option 2: Total Invoice Value
- Input the final amount including tax in the “Total Invoice Value (₹)” field.
- For example:
- If the total invoice value is ₹5350, enter
5350.
- If the total invoice value is ₹5350, enter
Step 2: Enter Sales Tax Rate
- Input the percentage rate of sales tax applicable in the region in the “Sales Tax Rate (%)” field.
- For example:
- If the sales tax rate is 7%, enter
7.
- If the sales tax rate is 7%, enter
Step 3: Calculate
- Click the “Calculate” button to generate the result.
- The calculator will display:
- If you entered the Purchase Amount :
- Sales Tax : The amount of tax added to the purchase.
- Total Amount : The final amount payable, including sales tax.
- If you entered the Total Invoice Value :
- Taxable Value : The base price of the product or service before tax.
- Sales Tax : The amount of tax included in the total invoice value.
- If you entered the Purchase Amount :
Understanding the Results
From Purchase Amount :
- Example:
- If the purchase amount is ₹5000 and the sales tax rate is 7%:
- Sales Tax :
- Total Amount :
- If the purchase amount is ₹5000 and the sales tax rate is 7%:
- Example:
From Total Invoice Value :
- Example:
- If the total invoice value is ₹5350 and the sales tax rate is 7%:
- Taxable Value :
- Sales Tax :
- If the total invoice value is ₹5350 and the sales tax rate is 7%:
- Example: