How do you calculate sales tax?

Multiply the pre-tax price by the tax rate divided by 100, then add to the original price. Formula: Total = Price + (Price × Rate / 100). For example, $50 at 8% tax: $50 + ($50 × 0.08) = $50 + $4 = $54. Our calculator handles this automatically for any amount and rate.

Which US states have no sales tax?

Five states have no state-level sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. However, Alaska allows local jurisdictions to impose their own sales taxes (up to 7.5%), so purchases in some Alaskan cities may still include tax. Delaware and Oregon are completely tax-free at both state and local levels.

How do you remove sales tax from a total?

Divide the total by (1 + tax rate / 100) to get the pre-tax price. Formula: Pre-tax Price = Total / (1 + Rate/100). For example, to remove 8.25% tax from a $54.13 total: $54.13 / 1.0825 = $50.00 pre-tax. The tax portion is $54.13 − $50.00 = $4.13.

What is the average US sales tax rate?

The average combined state and local sales tax rate across the United States is approximately 6.6%. However, this varies dramatically by location. The highest combined rates exceed 10% in parts of Louisiana, Tennessee, and Arkansas, while five states have no state sales tax at all.

Are online purchases subject to sales tax?

Yes, since the 2018 Supreme Court ruling in South Dakota v. Wayfair, states can require online retailers to collect sales tax even if the seller has no physical presence in the state. Most major online retailers now collect sales tax based on the buyer's shipping address and the applicable state and local rates.

What is the difference between sales tax and VAT?

Sales tax is collected once at the point of final sale to the consumer, while VAT (Value Added Tax) is collected at every stage of production and distribution, with businesses reclaiming the tax paid on their inputs. The US uses sales tax; most other countries (including EU nations) use VAT. For consumers, the end result is similar—a tax added to the purchase price.

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Add or remove sales tax from any amount. Use preset rates for US, Germany, or France, or enter a custom rate. Works for any tax or VAT calculation.

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How Sales Tax Works in the United States

Unlike most countries that have a national VAT (Value Added Tax), the United States does not have a federal sales tax. Instead, sales tax is set at the state and local level, meaning rates vary significantly depending on where you shop.

Sales tax is calculated as a percentage of the purchase price and added at the point of sale. The formula is simple:

Add tax: Total = Price + (Price × Tax Rate / 100)
Remove tax: Price = Total / (1 + Tax Rate / 100)
Find tax amount: Tax = Total − (Total / (1 + Tax Rate / 100))

Most US states charge sales tax on tangible goods, while services and groceries may be exempt or taxed at reduced rates depending on the state.

US State Sales Tax Rates (2025–2026)

State	State Rate	Avg. Local Rate	Combined Avg.
California	7.25%	1.57%	8.82%
Texas	6.25%	1.94%	8.19%
New York	4.00%	4.52%	8.52%
Florida	6.00%	1.01%	7.01%
Illinois	6.25%	2.49%	8.74%
Pennsylvania	6.00%	0.34%	6.34%
Ohio	5.75%	1.47%	7.22%
Washington	6.50%	2.73%	9.23%
Tennessee	7.00%	2.55%	9.55%
Louisiana	4.45%	5.10%	9.55%

States with No Sales Tax

Five US states do not charge any state-level sales tax:

Alaska — No state tax, but some local jurisdictions charge up to 7.5%
Delaware — No state or local sales tax at all
Montana — No state tax, limited resort taxes in some areas
New Hampshire — No state sales tax (has meals & rooms tax of 8.5%)
Oregon — No state or local sales tax at all

Additionally, some states exempt essential items. For example, most states don't tax groceries (food for home consumption), and many exempt clothing, prescription drugs, and medical devices.

When to Add vs. Remove Tax

Our calculator supports three modes for different real-world scenarios:

Add Tax — Use when you know the pre-tax price and want to find the total. For example, an item priced at $29.99 in Texas (8.25% combined rate) costs $29.99 + $2.47 = $32.46 after tax.
Remove Tax — Use when you have a receipt total and want to find the original price. For example, you paid $32.46 total at 8.25% tax: $32.46 / 1.0825 = $29.99 pre-tax price.
Tax Amount — Use when you need to know how much tax is embedded in a total. This is useful for expense reporting, bookkeeping, or determining the deductible portion of a purchase.

Did you know? The average combined state and local sales tax rate in the US is approximately 6.6%. However, rates range from 0% (Delaware, Oregon) to over 10% in parts of Louisiana and Tennessee when local taxes are included. Always check your specific city and county rates for the most accurate calculation.

International users: This calculator also works for VAT (Value Added Tax) calculations. Select Germany or France presets for standard European rates, or enter any custom rate for your country's tax system.