Sales Tax Calculator
Your Calculation
Calculation Breakdown
Common Mistakes to Avoid
- Don’t forget some items are tax-exempt (groceries, prescriptions vary by state)
- Local city taxes can add 1% to 3% on top of state rates
- Online purchases may charge tax based on seller location or your location
- Combined rates (state + county + city) can exceed 10% in some areas
How Sales Tax Calculation Works
Sales tax is a percentage of the purchase price added at checkout. The rate depends on where you buy, not where the seller is located (in most cases). States and provinces set their own rates, and cities or counties often add local taxes on top.
The math is straightforward:
Total Price = Price + Tax Amount
Or combined:
Total Price = Price × (1 + Tax Rate ÷ 100)
If you buy something for $50 in California where sales tax is 7.25%, the tax is $50 × 0.0725 = $3.63. Your total is $53.63.
Calculating Backwards (Reverse Sales Tax)
Sometimes you know the final price and need to figure out how much was tax. This happens when looking at receipts or budgeting with a fixed amount.
The formula flips:
Tax Amount = Total Price – Price Before Tax
You spent $108 total in Texas (8.25% tax). Price before tax is $108 ÷ 1.0825 = $99.77. Tax was $8.23.
US State Sales Tax Rates (2025)
States With No Sales Tax
Five states charge zero sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. But Alaska allows local governments to charge up to 7%, so some cities still have sales tax even though the state doesn’t.
Highest Sales Tax States
California leads at 7.25% state rate, but local taxes push some areas above 10%. Louisiana is 4.45% state but averages over 9% combined. Tennessee hits 7% state with locals adding more.
| State | State Rate | Avg Combined Rate |
|---|---|---|
| California | 7.25% | 8.85% |
| Tennessee | 7.00% | 9.55% |
| Louisiana | 4.45% | 9.56% |
| Arkansas | 6.50% | 9.45% |
| Washington | 6.50% | 9.38% |
| Alabama | 4.00% | 9.29% |
Popular State Examples
Texas: 6.25% state, but most cities add 1% to 2% local tax. New York: 4% state, but NYC charges 8.875% total. Florida: 6% state, tourist areas like Miami add local taxes. Illinois: 6.25% state, Chicago hits 10.25% combined.
Canadian Provincial Sales Tax (2025)
How Canadian Sales Tax Works
Canada uses three systems: GST (federal Goods and Services Tax), PST (Provincial Sales Tax), and HST (Harmonized Sales Tax that combines both). Which one applies depends on the province.
GST is 5% everywhere. Some provinces add PST on top. Others use HST which rolls everything into one rate.
| Province | Tax Type | Total Rate |
|---|---|---|
| Alberta | GST only | 5% |
| Ontario | HST | 13% |
| Quebec | GST + QST | 14.975% |
| British Columbia | GST + PST | 12% |
| Nova Scotia | HST | 15% |
| Saskatchewan | GST + PST | 11% |
Alberta has the lowest at 5% (GST only, no provincial tax). Quebec and Atlantic provinces hit 14% to 15%. Most provinces fall between 11% and 13%.
Tax-Exempt Items
What’s Usually Tax-Free
Most states don’t tax groceries (unprepared food you cook at home). Prescription medications are tax-exempt almost everywhere. Some states skip tax on clothing under certain dollar amounts.
But rules vary wildly. Illinois taxes groceries at 1% instead of the full rate. Pennsylvania exempts clothing but taxes candy and soda. Tennessee taxes groceries at 4% while exempting food ingredients.
Common Tax-Exempt Categories
Prescription drugs: tax-free in all 50 states. Groceries: 37 states exempt or tax at reduced rates. Clothing: tax-free in Minnesota, New Jersey, Pennsylvania, and a few others. Medical devices and equipment: usually exempt with a prescription.
Prepared food, alcohol, tobacco, and candy get taxed everywhere even if regular groceries don’t. The line between “grocery” and “prepared food” causes confusion. A rotisserie chicken might be taxed while raw chicken isn’t.
Edge Cases and Common Questions
Do I Pay Sales Tax on Online Purchases?
Yes, almost always now. After the 2018 South Dakota v. Wayfair Supreme Court case, states can require online sellers to collect sales tax even without a physical presence in the state.
Amazon, Walmart, Target, and other big retailers collect tax based on your shipping address. Smaller sellers might not if they don’t meet the state’s threshold (usually $100,000 in sales or 200 transactions).
Technically you owe “use tax” on untaxed online purchases, but almost nobody pays it. States are cracking down by requiring marketplace platforms to collect tax on third-party sellers.
What About Cross-Border Shopping?
If you live in Oregon (no sales tax) and drive to Washington to shop, you pay Washington’s 6.5% tax. The tax applies where you buy, not where you live.
But some states offer exemptions. Delaware charges no sales tax and many people from nearby states shop there specifically for that reason. If you buy a car in a low-tax state and register it in a high-tax state, you’ll owe the difference.
How Does Sales Tax Work on Services?
Most states don’t tax pure services like legal advice, consulting, or haircuts. But states are expanding to tax more services. Hawaii taxes nearly everything. New Mexico taxes most services. South Dakota taxes things like landscaping and pest control.
Digital services create confusion. Is Netflix a taxable service? What about Spotify or software subscriptions? Some states say yes, others no. The rules are changing as states chase revenue from the digital economy.
What’s the Difference Between Use Tax and Sales Tax?
Use tax is what you owe when you buy something without paying sales tax but use it in your home state. Buy furniture in Delaware (no sales tax), bring it to Maryland (6% tax), you technically owe Maryland 6% use tax.
Nobody tracks this for small purchases. States mostly care about big-ticket items like cars, boats, or business equipment. But legally, you’re supposed to self-report and pay use tax on your annual tax return.
Real-World Examples
Buying Electronics in Different States
You want a $1,200 laptop. In New York City (8.875% tax), you pay $106.50 in tax, total $1,306.50. In Texas (average 8.25%), that’s $99 tax, total $1,299. In Oregon (0% tax), you pay exactly $1,200.
The savings from driving to a no-tax state might not cover gas and time unless you’re making a major purchase. But if you’re already near the border, it adds up fast.
Restaurant Bill Calculation
Dinner costs $85 before tax in Chicago (10.25% on restaurant food). Tax is $8.71. If you tip 20% on the pre-tax amount ($17), your total is $110.71. Some people tip on the post-tax total by mistake, which means tipping on the tax itself.
Budgeting for a Car Purchase
Car costs $30,000 in Florida (6% sales tax). You’ll pay $1,800 in tax, total $31,800. In California (7.25% plus local taxes, say 9% combined), that’s $2,700 tax, total $32,700. Nearly $1,000 difference just from location.
Some states tax based on where you register the car, not where you buy it. Check your state’s rules before assuming you can save by buying out of state.
Quick Reference Table
| Purchase Price | 6% Tax | 8% Tax | 10% Tax | 13% Tax (Canada) |
|---|---|---|---|---|
| $50 | $3.00 | $4.00 | $5.00 | $6.50 |
| $100 | $6.00 | $8.00 | $10.00 | $13.00 |
| $500 | $30.00 | $40.00 | $50.00 | $65.00 |
| $1,000 | $60.00 | $80.00 | $100.00 | $130.00 |
| $5,000 | $300.00 | $400.00 | $500.00 | $650.00 |
Frequently Asked Questions
Why do prices in the US not include sales tax?
Cultural and practical reasons. Tax rates vary by city and county, so a national chain can’t print one price tag for all locations. Also, Americans are used to seeing the pre-tax price and calculating tax separately, unlike Europe where VAT is included in displayed prices.
Can I get a sales tax refund when traveling?
Not in the US. Unlike VAT refunds in Europe, American sales tax is final. Some states offer tourist refund programs for hotels or rental cars, but general shopping doesn’t qualify for refunds.
Is sales tax deductible on federal income taxes?
You can deduct state and local taxes (SALT) on your federal return, but there’s a $10,000 cap. Most people take the standard deduction instead, which means sales tax doesn’t affect their federal taxes at all.
Do I pay sales tax on a used car from a private seller?
Yes, when you register it. The DMV collects sales tax based on the purchase price (or fair market value if they think you’re lying about the price). You can’t avoid it by buying from a private party instead of a dealer.
What happens if a store charges me the wrong sales tax?
The store keeps the difference if they overcharge, or owes the state if they undercharge. Either way, it’s not your problem unless you want a refund. Most stores will correct errors if you point them out immediately.
When to Use This Calculator
Use this tool when you’re shopping online and want to know the true total before checkout, budgeting for a big purchase, comparing prices between states, figuring out how much of a receipt was tax, or planning a business expense report.
It’s also helpful for freelancers and small business owners who need to collect sales tax from customers. Knowing the exact rate and amount keeps you compliant and prevents accidentally undercharging.
Bottom line: this calculator removes the guesswork from sales tax so you know exactly what you’ll pay or what you need to charge, no surprises at checkout.