Skip to content
TrueScalers

Sales tax calculator

A sales tax calculator adds tax to a net price using gross = net × (1 + rate ÷ 100), or removes tax already included using net = gross ÷ (1 + rate ÷ 100). At a 7.25% rate, $200 before tax becomes $214.50, and a $214.50 tax-inclusive total contains $14.50 of tax on a $200 net price.

$
%
Calculated in your browser — nothing is uploaded.

Result

Total including tax

$214.50

gross = net × (1 + rate ÷ 100)

Pre-tax amount
$200.00
Sales tax
$14.50
Total
$214.50

Adding 7.250% sales tax to $200.00 gives a total of $214.50, of which $14.50 is tax.

How to use the sales tax calculator

  1. 01

    Enter the amount

    Type the price. Use the pre-tax figure when adding tax, or the tax-inclusive total when extracting it.

  2. 02

    Enter your tax rate

    Type the combined rate. US buyers should add state, county, city and any special-district rates together — the combined rate is what appears on the receipt.

  3. 03

    Choose the direction

    Select whether to add tax to a pre-tax price or to remove tax already included in a total.

  4. 04

    Read the breakdown

    The rows beneath the result separate the pre-tax amount, the tax itself and the total, so any of the three can be copied straight into a return or expense claim.

The formula

gross = net × (1 + rate ÷ 100);   net = gross ÷ (1 + rate ÷ 100)
net
The price before tax.
gross
The price including tax.
rate
The combined tax rate as a percentage.
tax
The tax amount, equal to gross minus net.

Extracting tax requires division, not subtraction. Subtracting 7.25% from a tax-inclusive $214.50 gives $198.95, which is wrong by $1.05 — a mistake that compounds across a set of receipts.

Worked example

Amount
$200.00
Sales tax rate
7.25%
Direction
Add tax to a pre-tax price
Result
$214.50

Convert the rate into a multiplier: 1 + 7.25 ÷ 100 = 1.0725. Multiply the net price: 200 × 1.0725 = $214.50, of which $14.50 is tax. Reversing the calculation confirms it: 214.50 ÷ 1.0725 = $200.00 exactly. Subtracting 7.25% of $214.50 instead would give $198.95, understating the net price by $1.05.

Frequently asked questions

How do you calculate sales tax on a purchase?

Multiply the pre-tax price by the tax rate expressed as a decimal, then add the result to the price. At a 7.25% rate, a $200 purchase carries 200 × 0.0725 = $14.50 of tax for a $214.50 total. Equivalently, multiply the price by 1.0725 to reach the total in a single step.

How do you work out the tax included in a total price?

Divide the tax-inclusive total by one plus the rate as a decimal to recover the net price, then subtract. A $214.50 total at 7.25% divides to 214.50 ÷ 1.0725 = $200.00 net, leaving $14.50 of tax. Subtracting the percentage directly from the total is a common error and understates the net figure.

Which US state has the highest sales tax?

California levies the highest statewide base rate at 7.25%, though combined state and local rates reach beyond 10% in parts of Louisiana, Tennessee, Arkansas, Washington and Alabama. Five states — Alaska, Delaware, Montana, New Hampshire and Oregon — impose no statewide sales tax, although Alaska permits local sales taxes.

What is the difference between sales tax and VAT?

Sales tax is levied once, at the final retail sale, and is typically shown separately at the register. Value-added tax is collected at every stage of production, with each business reclaiming the tax it paid on inputs. VAT is normally included in the displayed shelf price, which is why European price tags rarely change at checkout.

Is sales tax charged on shipping?

Treatment varies by state. Roughly half of US states tax delivery charges when the goods themselves are taxable; others exempt shipping when it is stated separately on the invoice. Because the rule follows the destination state in most remote-sales situations, sellers shipping across state lines must apply each destination's treatment.

Do online purchases carry sales tax?

Generally yes, in the United States. The Supreme Court decision in South Dakota v. Wayfair (2018) allowed states to require sales tax collection from remote sellers exceeding an economic-nexus threshold, commonly $100,000 in sales or 200 transactions per year. Most large online retailers now collect tax at the buyer's destination rate.

Sources

Last reviewed: · Formula and sources verified by Syed Aqeel Ahmad Gillani. See the methodology for how every calculation is derived.

Related tools