Sales Tax Calculator
This sales tax calculator works in both directions. Enter a price and your local tax rate to see the sales tax amount and the final total at the register — handy for budgeting a purchase before you check out. The default rate of 8.875% is New York City's combined state and local rate, but you can set it to any rate your area charges.
It also runs in reverse: if you have a receipt or a tax-inclusive total and want to know the price before tax, switch to "Find the price before tax" and the calculator backs the tax out for you. That's useful for expense reports, comparing listed prices across states, or figuring out how much of a purchase was actually tax.
How it works
In "Add tax" mode, the calculator converts your tax rate from a percentage to a decimal, multiplies it by the price to get the sales tax amount, and adds that tax to the price for the final total. In "Find the price before tax" mode, it treats your amount as the tax-inclusive total and divides it by one plus the rate to recover the original pre-tax price; the difference between the total and that pre-tax price is the tax portion. All money figures are rounded to the nearest cent.
Formula
Adding tax: tax = price × r and total = price × (1 + r), where r is the tax rate as a decimal (8.875% → 0.08875). Reversing tax: price = total ÷ (1 + r) and tax = total − price. Note that reversing divides by (1 + r) — subtracting the percentage from the total would remove too much, because the tax was charged on the smaller pre-tax price, not on the total.
Worked example
Say you buy an item priced at $100 in New York City, where the combined rate is 8.875%. The sales tax is 100 × 0.08875 = $8.875, which rounds to $8.88, so you pay $108.88 at the register. Running it in reverse: a tax-inclusive total of $108.88 at 8.875% gives 108.88 ÷ 1.08875 ≈ $100.00 before tax, with $8.88 of the total being tax — the calculation round-trips cleanly.
This calculator is for informational purposes only. Sales tax rates vary by state, county, and city, and some items are taxed at different rates or exempt entirely — check your local rates before relying on a result.
Frequently asked questions
How do I calculate sales tax by hand?
Convert the tax rate to a decimal by dividing by 100, then multiply it by the price. At a 7% rate, a $40 item carries 40 × 0.07 = $2.80 in tax, for a total of $42.80. A quick shortcut for the total in one step: multiply the price by one plus the decimal rate, so 40 × 1.07 = $42.80.
Why does finding the pre-tax price divide instead of subtracting the percentage?
Because the tax was charged on the smaller pre-tax price, not on the final total. Subtracting 8.875% from $108.88 would remove $9.66 — too much. Dividing by 1.08875 correctly recovers the $100 base, since the total equals the pre-tax price multiplied by 1.08875 in the first place.
How does sales tax work in the United States?
There is no national sales tax. Each state sets its own rate, and counties and cities often add local taxes on top, so the combined rate you pay depends on where the sale happens. Combined rates range from 0% to roughly 10%. Five states charge no state sales tax at all: Alaska, Delaware, Montana, New Hampshire, and Oregon, though some Alaska localities levy their own.
Is sales tax charged on groceries or services?
It varies by state. Most states exempt unprepared groceries or tax them at a reduced rate, while prepared food and restaurant meals are usually taxed in full. Services are traditionally untaxed in many states, but a growing number tax specific services like repairs, digital goods, or streaming. Check your state and local rules for the items you care about.
What is the difference between sales tax and VAT?
US sales tax is charged once, at the final sale to the consumer, and is typically added at the register on top of the sticker price. VAT (value-added tax), used in most other countries, is collected in stages at each step of the supply chain and is normally already included in the displayed price. Both are ultimately paid by the consumer, but VAT rates tend to be higher, often 15-25%.