How do I calculate sales tax?

To calculate sales tax, multiply the pre-tax price by the tax rate percentage, then divide by 100. For example: $100 × 8% = $8 tax. Total price = $100 + $8 = $108.

What is the difference between sales tax and VAT?

Sales tax is added at the point of sale and varies by location. VAT (Value Added Tax) is included in the price throughout the supply chain and is common in many countries. Sales tax is more common in the United States.

Do all items have the same sales tax rate?

No, sales tax rates vary by location, product type, and sometimes by the total purchase amount. For example, groceries often have lower tax rates than luxury items, and some items like prescription drugs may be tax-exempt.

How do businesses handle sales tax?

Businesses must collect sales tax on taxable items and remit it to the appropriate tax authority. They use sales tax calculators to determine the correct amount to charge customers and ensure compliance with local tax laws.

Can I calculate backwards from a total price?

Yes! To find the pre-tax price from a total: Pre-tax Price = Total Price ÷ (1 + Tax Rate/100). For example: $108 ÷ (1 + 0.08) = $100.

What items are typically exempt from sales tax?

Common tax-exempt items include: prescription medications, some food items, clothing for children under certain ages, and sometimes housing-related purchases. Exemptions vary by state and locality.

Sales Tax Calculator

Calculate sales tax and total price including tax for different jurisdictions and tax rates. Perfect for business planning, shopping, and financial calculations with accurate tax computations.

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Common Sales Tax Rates

Popular tax rates by region and category

Enter Price & Tax Rate

Input the pre-tax price and sales tax percentage

Price Before Tax ($)

Sales Tax Rate (%)

Sales Tax Formula: Tax Amount = Price × (Tax Rate / 100). The total price includes the original price plus the calculated tax.

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