Sales Tax Calculator
A free tool to add or extract sales tax from a price.
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Calculation Results
Sales Tax
Total Amount
How this was calculated:
Disclaimer: This calculator is for informational purposes only and should not be considered legal or financial advice. Sales tax laws are complex and can change frequently. Please consult with a qualified tax professional for advice specific to your situation.
What is Sales Tax?
Sales tax is a consumption tax that governments place on the sale of goods and services. When you buy an item at a store, the total price you pay often includes the retail price plus an additional percentage for sales tax. This tax is collected by the seller and then paid to the government (state, county, or city).
Tax rates vary widely depending on your location, which is why our calculator allows you to enter any tax rate you need.
How Sales Tax is Calculated
Adding Tax (Forward Calculation)
This is the most common calculation. To find the total price, you first calculate the tax amount and then add it to the original price.
Formula: Total Price = Pre-Tax Amount + (Pre-Tax Amount × Tax Rate)
Extracting Tax (Reverse Calculation)
This is useful when you have a final receipt and want to know how much the item cost before tax. To find the original price, you divide the total by 1 plus the tax rate.
Formula: Pre-Tax Amount = Total Price / (1 + Tax Rate)
Frequently Asked Questions
What is sales tax?
Sales tax is a consumption tax imposed by a government on the sale of goods and services. It is collected by the retailer at the point of sale and then passed on to the government.
How do you calculate sales tax on a purchase?
To calculate the sales tax on a purchase, you multiply the pre-tax price of the item by the sales tax rate (expressed as a decimal). For example, if an item costs $100 and the sales tax rate is 7%, the tax would be $100 * 0.07 = $7.
What is a reverse sales tax calculation?
A reverse sales tax calculation (or extracting tax) is used when you know the final price of an item (including tax) and want to find out the original pre-tax price and the amount of tax paid. Our calculator's 'Extract Tax' function does this for you.