Sales tax calculator
Add sales tax to a price, or reverse it out of a total, for any state. VAT and GST work the same way.
Sale amount
EX = tax added · IN = tax includedTax system
State · base rate
6.25% baseState tax %
Local tax %
Tax mode
Discount + timing
Shipping (optional)
Added before tax calculation
Total to pay
$106.25
Receipt preview
Formula
Total = Price before tax plus (Price times Tax rate). Example: 100 plus (100 times 0.0625) = 106.25
Watch the calculator fill itself in
The same panel you used above, adding tax to a price, then taking it back out of a total. The second one is where most invoices go wrong.
Your tax breakdown
$0.00
Total with tax
yd³ = L × W × T ÷ 27
The same sale elsewhere
Start with the amount you need to borrow
Jump to any part to replay it. The formulas behind these numbers are set out further down the page.
Sales tax on an invoice, without the awkward corrections
Getting the number right is the easy half. These are the four places sales tax goes wrong between the quote and the return.
Quote net, invoice with the tax shown
Quote the price before tax and show the tax as its own line on the invoice. A client who sees one combined figure will remember the larger number and argue about it later, and you will have no clean way to prove what you charged.
The invoice generator keeps tax on its own line and totals it for you.
Tax-inclusive pricing comes out of your margin
If you advertise a round number and absorb the tax, the tax is paid from your side of the line. On a 30% margin at 8.25% tax, roughly a quarter of the profit on that sale disappears.
Work backwards from the net you need with the remove-tax mode above, and price the job on that figure rather than the advertised one.
Use the rate for the delivery address
The rate that applies is usually the one where the customer takes delivery, not where you are registered. State base rates are the smaller part: city, county and district taxes routinely add two points or more on top.
Put the rate you used on the invoice, and state it the same way on the quote, so a query six months later has an answer.
The tax you collect is not your money
It is held for the state until the return is filed. Treating it as income is how businesses find themselves paying a return out of next month's work.
Keeping it as a separate line on every invoice is what makes the return a copying exercise rather than a reconstruction.
The rate is one line on a document that has to be right
Sales tax turns up twice on every job: once on the quote, where it sets expectations, and once on the invoice, where it becomes money you owe the state. Both documents are free here as well.
Get the rate right
State base plus the local add-on for the address where the sale is taxed, added to a net price or taken back out of a gross one.
You are hereShow it on the quote
Quote net, state the rate, and say tax will be added. A client who learns about the tax at invoice stage remembers it as a price increase.
Open the Quote GeneratorInvoice it as its own line
Separate line, rate stated, total below it. That is what makes the return a copying exercise instead of a reconstruction.
Open the Invoice GeneratorPricing tax-inclusive? The tax comes out of your side of the line, so check the job still pays with the profit margin calculator.
How to calculate sales tax, and how to reverse it
Add sales tax: tax = price × rate ÷ 100, and total = price + tax. At the Texas base rate of 6.25%, a $100 price carries $6.25 of tax and totals $106.25.
Reverse sales tax: price before tax = total ÷ (1 + rate ÷ 100), and tax = total − price. A $106.25 total at 6.25% came from $100.00: 106.25 ÷ 1.0625. Subtracting 6.25% of the total instead gives $99.61, which is the most common mistake with a tax-inclusive figure. In the calculator above, choose IN under tax mode to work backwards.
Find the rate from a receipt: rate = tax ÷ price before tax × 100. $8.25 of tax on $100 is 8.25%.
Play: Enter custom price, see tax instantly
Price
$100.00
Tax 6.25%
$6.25
Total
$106.25
Sales tax rates by state, base plus average local
Base rate is what state charges. Most cities and counties add local tax on top. Example: California base 7.25 percent, average combined about 8.82 percent. Texas base 6.25 percent, average combined about 8.19 percent. Louisiana highest combined about 10.13 percent. Five states with no statewide sales tax: Alaska, Delaware, Montana, New Hampshire, Oregon. Enter custom price to recalc all states.
Base rate
6.25%
Avg combined
8.19%
Tax on $100
$6.25
Total on $100
$106.25
| State | Base Rate | Avg Combined | Tax on $100 (base) | Total on $100 (base) | Total on $100 (avg combined) |
|---|
Base rates from Tax Foundation 2026. The average combined figure includes the average local add-on. Use state dropdown above to set your rate.
Open the full calculatorHow to use this tax calculator
Four steps, all in your browser.
1. Enter the amount
Type the price before tax, or the total that already includes tax if you are working backwards.
2. Pick the tax mode
EX adds tax to a price before tax. IN takes the tax back out of a total that includes it, which is the reverse sales tax calculation.
3. Choose state
Pick the state and its base rate loads: Texas 6.25%, California 7.25%, New York 4%. Add the local rate for the delivery address if you know it.
4. Check result
See price before tax, tax amount, total. Use the bar to see split. Copy or export for your invoice.
What is sales tax?
Sales tax is a fee added at checkout when you buy goods or services. The seller collects it from you and sends it to the state or local tax office. The rate depends on where you are and what you are buying. This money pays for schools, roads, police, fire and other public services. For anyone who sells, getting the tax right matters, because collecting too little or too much can cause penalties or lost sales.
Who collects
Seller collects at point of sale, then remits to tax authority monthly, quarterly or yearly depending on volume.
Where it goes
State and local governments use it as a major revenue source, almost a quarter of their combined collections.
Why rates differ
Each state sets its own base, and cities and counties can add more. So two stores a few miles apart can have different totals.
Why is there no federal sales tax in the US?
Unlike many other countries, the US does not have a national sales tax. Each state decides if it wants one and how high. Out of 50 states plus DC, five have no statewide sales tax at all: Alaska, Delaware, Montana, New Hampshire and Oregon. Alaska does allow some cities to charge their own local tax though. For all other states, the rate changes not just by state but by county and city, so compliance gets tricky fast. Rates can be 0% to over 10% combined depending on location and what you sell. For example Texas does not tax prescription medicines or food seeds, while some states add extra tax on alcohol for immediate consumption.
State rates, base plus the local maximum
Base is what the state charges. Max local is the highest additional amount a city or county in that state can add. Your actual combined rate is base plus your local. Use the calculator above to set your exact rate. State base rates and maximum local add-ons are compiled from each state's own revenue department, written out here rather than lifted from a rate table. Local rates change, so set yours in the calculator above rather than relying on the maximum.
| State | Base % | Max Local % | Notes |
|---|---|---|---|
| AL Alabama | 4.00 | 7.00 | High combined avg 9.46% |
| AK Alaska | 0.00 | 7.50 | No state, locals up to 7.5% |
| AZ Arizona | 5.60 | 5.30 | Base 5.6% |
| AR Arkansas | 6.50 | 5.63 | Avg combined 9.48% |
| CA California | 7.25 | 3.25 | Base 7.25%, avg 8.82% |
| CO Colorado | 2.90 | 8.31 | Low base, high local |
| CT Connecticut | 6.35 | 1.00 | Mostly state only |
| DE Delaware | 0.00 | 0.00 | No sales tax |
| FL Florida | 6.00 | 2.50 | Base 6% |
| GA Georgia | 4.00 | 4.90 | Base 4% |
| HI Hawaii | 4.00 | 0.50 | GET tax |
| ID Idaho | 6.00 | 3.03 | Base 6% |
| IL Illinois | 6.25 | 7.00 | Avg 8.86% |
| IN Indiana | 7.00 | 0.00 | Flat 7% |
| IA Iowa | 6.00 | 1.00 | Base 6% |
| KS Kansas | 6.50 | 4.00 | Groceries exempt from state from 2025 |
| KY Kentucky | 6.00 | 0.00 | No local |
| LA Louisiana | 5.00 | 7.00 | Base raised to 5% Jan 2025, avg combined 10.13% highest |
| ME Maine | 5.50 | 0.00 | No local |
| MD Maryland | 6.00 | 0.00 | No local |
| MA Massachusetts | 6.25 | 0.00 | No local |
| MI Michigan | 6.00 | 0.00 | No local |
| MN Minnesota | 6.88 | 1.50 | Base 6.875% |
| MS Mississippi | 7.00 | 1.00 | Groceries lowered to 5% from July 2025 |
| MO Missouri | 4.23 | 6.88 | Base 4.225% |
| MT Montana | 0.00 | 0.00 | No sales tax |
| NE Nebraska | 5.50 | 2.00 | Base 5.5% |
| NV Nevada | 6.85 | 1.53 | Base 6.85% |
| NH New Hampshire | 0.00 | 0.00 | No sales tax |
| NJ New Jersey | 6.63 | 3.00 | Urban zones lower |
| NM New Mexico | 4.88 | 3.31 | GRT, state rate 4.875% |
| NY New York | 4.00 | 4.88 | Base 4%, avg 8.05% |
| NC North Carolina | 4.75 | 2.75 | Base 4.75% |
| ND North Dakota | 5.00 | 2.00 | Base 5% |
| OH Ohio | 5.75 | 2.25 | Base 5.75% |
| OK Oklahoma | 4.50 | 7.00 | Base 4.5% |
| OR Oregon | 0.00 | 0.00 | No sales tax |
| PA Pennsylvania | 6.00 | 2.00 | Base 6%, Philly and Allegheny extra |
| RI Rhode Island | 7.00 | 0.00 | No local |
| SC South Carolina | 6.00 | 3.00 | Base 6% |
| SD South Dakota | 4.20 | 2.00 | Base 4.2% until July 2027 |
| TN Tennessee | 7.00 | 2.75 | Base 7%, avg 9.61% |
| TX Texas | 6.25 | 2.00 | Base 6.25%, avg 8.19% |
| UT Utah | 6.10 | 3.45 | Base 4.85% plus 1.25% mandatory local, floor 6.1% |
| VT Vermont | 6.00 | 1.00 | Base 6% |
| VA Virginia | 5.30 | 1.70 | Base 5.3% |
| WA Washington | 6.50 | 3.00 | Base 6.5%, avg 9.57% |
| WV West Virginia | 6.00 | 1.00 | Base 6% |
| WI Wisconsin | 5.00 | 0.50 | Base 5% |
| WY Wyoming | 4.00 | 2.00 | Base 4% |
| DC District of Columbia | 6.00 | 0.00 | Base 6% |
A short history of sales tax in the US
Sales tax in the US is newer than income tax. Mississippi adopted the first general state sales tax in 1930, during the Great Depression, to raise money when property taxes fell. Other states followed quickly. By the 1960s most states had a sales tax. Unlike Europe which uses VAT, the US stayed with a state and local system. Over time cities and counties added their own layers, creating thousands of tax areas. Then online shopping came, and the 2018 South Dakota v. Wayfair decision let states require sellers to collect tax even without a store in that state, if sales pass a threshold. That is why a small business today can need to track sales in many states.
Can you deduct sales tax? Business against personal
For businesses
Tax you collect from customers is not your money, you hold it for the government and send it in. You do not deduct that. What you can often deduct is sales tax you pay on things you buy for work, like supplies or tools, as part of business expenses, depending on state rules. Keep receipts of tax paid on purchases and check with your accountant.
For individuals
If you itemize on your federal return, you choose to deduct either state and local income tax or state and local sales tax, not both. Together with property tax this is the SALT deduction, whose cap rose from $10,000 to $40,000 for 2025 under the 2025 tax law, with a lower cap for high incomes. If you live in a state with no income tax, sales tax deduction can help more. IRS lets you use actual receipts or estimate using tables based on income and family size. For big items like a car, you can add actual tax paid.
Local rules, exemptions and how they affect pricing
Local complexity
A city can charge extra on top of state. So total in one town can be 7%, a few miles away 10% because of extra county or district tax. You need exact address to get it right. For shops that ship, this means checking each customer address.
Exemptions
Many states do not tax groceries, prescription drugs, or medical devices to lower burden. Some services like consulting may not be taxable. Alcohol, tobacco and luxury items often have extra tax. Texas exempts food seeds, Vermont adds 10% extra on alcohol for immediate use. Not every sale is taxed the same.
Pricing and margin
If you show price without saying tax is extra, customers may think you are expensive. If you include tax in price, your margin shrinks. Our calculator shows tax breakdown clearly so you can keep margin healthy and customers know what they pay. On our invoice generator you can show tax line separately.
Online sales and economic nexus after Wayfair
Compliance is hard
There are thousands of tax areas in the US. Each has its own rate and filing schedule. You must collect right amount, file reports on time and send money to each place, sometimes monthly or quarterly. Rates change often at state and local level. Tracking by hand takes time and causes errors.
Wayfair and economic nexus
Before 2018 you needed a physical store to collect tax in a state. After South Dakota v. Wayfair 2018, states can require collection based on sales volume, even without physical presence. Most states use 100,000 dollars sales threshold. So if you sell online to many states, you may need to collect in those states. Utah removed 200 transaction rule in 2025 and now uses 100k only. Alaska removed 200 transaction rule too.
Recent changes we track
- Mississippi lowers grocery tax from 7% to 5% starting July 1, 2025.
- Kansas removed state tax on unprepared foods from Jan 1, 2025, local taxes may still apply.
- Louisiana raised state rate from 4.45% to 5.00% from Jan 1, 2025 and now taxes digital products like ebooks and SaaS with some business exemptions.
- Ohio Lake County raised combined rate to 7.25% from July 1, 2025.
- Local rates changed in many cities in Georgia, California, Iowa, Minnesota, Nebraska, New York, Texas, Washington from July 1, 2025 due to local votes.
VAT vs sales tax vs GST: what is the difference?
Outside the US most countries use VAT or GST, not sales tax. They work differently.
| Feature | VAT | Sales Tax | GST |
|---|---|---|---|
| Charged at | Every stage of production | Final sale only | Every stage, like VAT |
| Who pays | Collected at each stage, consumer bears all at end | End consumer only | Consumer bears all, businesses claim credit |
| Common in | Europe, Asia, Africa, South America | United States | Canada, Australia, India, NZ, Singapore |
| Deductible by business | Yes, input VAT can be deducted | No, not typically | Yes, input credit |
| Invoice need | VAT ID of seller and buyer, breakdown | Rate and total | GSTIN and breakdown |
VAT how it works
Manufacturer pays VAT on raw materials, wholesaler pays VAT but deducts VAT already paid, retailer charges VAT to final customer and deducts previous VAT. End customer pays full VAT, businesses act as collectors.
GST how it works
Similar to VAT, broad tax on most goods and services. Collected at each stage, businesses claim input credit. Final consumer bears tax. Designed as single unified tax replacing many indirect taxes.
What we do
Our invoice generator supports tax lines for sales tax, VAT and GST. You can set rate, show breakdown and add your VAT ID or GSTIN. Useful if you sell to clients in EU, UK, Canada, Australia, India.
Methodology, and what runs in your browser
Every figure here is worked out in your browser, with no storage and no API call. Adding tax multiplies the net price by the rate. Removing it divides the gross by one plus the rate, which is the step people get wrong when they subtract the percentage instead. State base rates are 2026 figures from public sources; local rates sit on top and vary by address.
Disclaimer: base rates are shown. Many cities and counties add local tax on top; check the rate for your exact address if it matters. Estimates are for informational purposes only.
Sales tax questions, answered
Short answers to the sales tax questions that come up when pricing and invoicing.
How do I calculate sales tax?
Multiply the price by the rate as a decimal, then add it on. At 8.25%, a $100 item carries $8.25 of tax and costs $108.25. The calculator above does it both ways, because working backwards out of a total is the version people get wrong.
How do I remove sales tax from a total (reverse sales tax)?
Divide by one plus the rate, do not subtract the percentage. A $108.25 total at 8.25% came from $100, not from $99.28. Subtracting 8.25% of the total is the most common sales tax mistake on an invoice.
What is California sales tax?
The statewide rate is 7.25%, and local district taxes push the combined rate well above 9% in many cities. Always use the rate for the address where the sale is taxed rather than the state headline figure.
Which states have no sales tax?
Alaska, Delaware, Montana, New Hampshire and Oregon have no statewide sales tax, though Alaska allows local sales taxes that can still apply. The other 45 states and DC all levy one.
Is shipping taxable?
It depends on the state and often on how you invoice it. Several states tax delivery when it is part of a taxable sale, and some exempt it if it is stated separately and the customer could have collected the goods. Itemize shipping so the treatment is at least visible.
What is the difference between base rate and combined rate?
The base rate is what the state charges. The combined rate adds the average city, county and district taxes on top. Texas is 6.25% base and about 8.19% combined, and the difference is money you either collect or absorb.
Is sales tax calculated before or after a discount?
Usually after. A discount the seller gives reduces the price the tax is charged on, so tax goes on the discounted amount. Some states treat coupons reimbursed by a manufacturer or another third party differently and tax the full price. The Before and After switch under the discount field shows both.
How do I find the sales tax rate from a receipt?
Divide the tax by the price before tax and multiply by 100. $8.25 of tax on a $100 purchase is 8.25%. If the receipt shows only the total and the tax, subtract the tax from the total first.
Who should collect sales tax?
Any business with nexus in a state: a physical presence, or enough sales into it to cross the economic threshold. Collection is your obligation, not the customer's, which is why getting the rate right on the invoice matters.
Do I need to collect sales tax when selling online?
Often yes. Since the Wayfair decision, states can require collection based on sales volume alone, with thresholds commonly around $100,000 or 200 transactions a year. Check each state you sell into rather than assuming your home rules apply.
How often should I file sales tax returns?
The state tells you, and it is usually monthly, quarterly or annually depending on how much you collect. Filing frequency can change as you grow, so check the notices rather than assuming last year's schedule still applies.
What happens if you forget to collect sales tax?
The liability is generally still yours, so the tax comes out of your margin along with any penalty and interest. That is the practical argument for putting the correct rate on the invoice at the time rather than reconciling later.
How do I calculate VAT?
Multiply the net price by the rate to add it, or divide the gross by one plus the rate to take it out. At 20%, a net 100 becomes 120, and a gross 120 came from 100. Under VAT the second direction is the common one, because displayed consumer prices already include the tax.
How do I remove VAT from a total?
Divide by 1.20 at the standard UK rate, not by subtracting 20%. A gross 120 came from 100, while subtracting 20% gives 96, which is wrong by four pounds on every hundred.
What are the UK and EU VAT rates?
The UK standard rate is 20%, with 5% reduced and 0% on some essentials. EU standard rates run from around 17% to 27%, and most countries also operate one or two reduced rates. Pick the country above and the calculator loads its standard rate with its reduced rates beside it.
What is the difference between VAT and sales tax?
Sales tax is charged once, at the final sale, and businesses buying for resale are exempt. VAT is charged at every stage, with each business reclaiming what it paid, so only the final consumer carries the whole amount. The arithmetic is the same; the paperwork is not.
How is GST calculated in India?
By slab rather than by a single national rate: the rate depends on the category of goods or services, and the slabs were restructured in September 2025. Check the current rate for what you sell, type it into the rate field, and the split works the same way as any other rate. The GST calculator page explains how the rate splits into CGST and SGST.
What is the GST rate in Australia and New Zealand?
Australia charges 10% on most goods and services, with some supplies GST free. New Zealand charges 15%. Both are single national rates, which makes them simpler than either US sales tax or EU VAT.
How does GST work in Canada?
Federal GST is 5%, and provinces either add a provincial tax on top or combine both into HST. Alberta charges GST alone; Ontario charges 13% HST; Quebec adds QST to the federal GST. Choose the province above and the combined rate loads.
Do I charge VAT or GST to overseas customers?
Often not, or at zero rate, but the rules depend on whether the customer is a business, where they are, and what you are selling. Digital services in particular have their own rules. Check your own jurisdiction rather than assuming the domestic rate applies.
Should my prices include sales tax?
In the US, prices are usually shown before tax and the tax is added at checkout. If you do quote tax-inclusive prices, the tax comes out of your margin rather than off the top, so work backwards from the net you need.
What sales tax rate should I put on an invoice?
The combined rate for the address where the sale is taxed: state, county, city and any district on top. The state figure alone is usually too low, often by more than two points.
Do I charge sales tax to out-of-state customers?
Only where you have nexus, which since the Wayfair decision can be created by sales volume alone. Thresholds are commonly around $100,000 or 200 transactions a year, and they are set per state.
Is sales tax charged on services?
It depends on the state and the service. Some states tax most services, others almost none, and many sit in between with a specific list. Check your own state rather than assuming labor is exempt.
What is use tax?
The counterpart to sales tax: if you buy something taxable without paying sales tax, you generally owe use tax at the same rate. It catches out-of-state purchases and is where small businesses most often find an unexpected bill.
How do I record sales tax collected?
As money held for the state, not as income. Keeping it visible as its own line on every invoice is what makes the return straightforward and stops the balance being spent.
Is the sales tax calculator free and private?
Yes. No signup and nothing uploaded: every figure is worked out in your browser and gone when you close the tab.
Should sales tax be a separate line on an invoice?
Yes. It shows the client what they are actually paying you for the work, it makes your return a copying exercise rather than a reconstruction, and it settles any later question about which rate was applied.
What happens if I quote a price and forget the tax?
Adding it afterwards is an awkward conversation, and many clients will treat the quote as final. Quote net and say plainly that tax will be added, or quote the tax-inclusive figure knowing it comes out of your margin.
Do I charge sales tax on the deposit or the final invoice?
Usually on both, in proportion, though the timing rules vary by state. Whichever you do, show the treatment on the deposit invoice so the final one reconciles without explanation.
How do I show sales tax on a quote?
As a separate line with the rate stated, exactly as it will appear on the invoice. A quote that matches the invoice line for line is the one that gets paid without a query.