Sales tax calculator
Add state and local sales tax to a price, or find the pre-tax price from a total. Handy for quotes, receipts and invoices in the United States.
How it works
In the United States, sales tax is set by states and often topped up by counties and cities. The rate a customer pays is the combined rate: state + local. Enter both, and the calculator shows the combined rate, the tax and the total.
Switch to Including tax if you have a total and want to know how much of it is tax.
Sales tax formulas
| To find | Formula |
|---|---|
| Combined rate | state rate + local rate |
| Sales tax | price × combined rate ÷ 100 |
| Total price | price × (1 + combined rate ÷ 100) |
| Price before tax | total ÷ (1 + combined rate ÷ 100) |
Example
A store in a city with a 6% state rate and 1.5% local rate sells a lamp for 80. Combined rate: 7.5%. Sales tax: 80 × 0.075 = 6.00. Total: 86.00.
Tips for invoicing sales tax
- Charge the rate for where the sale is delivered (the “destination”) if your state uses destination-based sourcing.
- Show tax as its own line so the customer can see the pre-tax price.
- Keep exemption certificates on file for tax-exempt customers.
In the invoice generator, enable Tax, rename it to “Sales tax” and enter the combined rate.
Frequently asked questions
How do I calculate sales tax?
Add the state and local rates together, then multiply the pre-tax price by that combined rate. At 7.5%, sales tax on 100 is 7.50 and the total is 107.50.
How do I find the price before sales tax?
Divide the total by 1 plus the combined rate. At 7.5%, 107.50 ÷ 1.075 = 100.
Which US states have no statewide sales tax?
Alaska, Delaware, Montana, New Hampshire and Oregon have no statewide sales tax, although some Alaskan localities charge their own.
Do services have sales tax?
It depends on the state and the service. Many states tax goods but only some services. Check your state’s rules before adding sales tax to a service invoice.