Calculate sales tax amount, before-tax price, and after-tax price. Find the missing value when you have any two of the three components.
Sales tax is a consumption tax imposed by governments on the sale of goods and services. It is typically calculated as a percentage of the purchase price and is collected by the seller at the point of sale. Understanding sales tax calculations is essential for consumers, business owners, and anyone making purchases across different jurisdictions.
This calculator helps you determine any missing component of a sales tax calculation when you have the other two values, making it useful for budgeting, business planning, and price comparisons.
Most common calculation for finding total cost
Find the actual tax paid on a purchase
Reverse calculation to find original price
| Tax Level | Range | Examples |
|---|---|---|
| No Sales Tax | 0% | Alaska, Delaware, Montana, New Hampshire, Oregon |
| Low Rate States | 2.9% - 4.5% | Colorado, Alabama, Georgia, Wyoming |
| Medium Rate States | 5% - 6.5% | North Dakota, Florida, Texas, Kansas |
| High Rate States | 7% - 8% | Indiana, Tennessee, New York |
| Variable Rates | By locality | Local taxes can add 0% - 10% |
| System Type | Description | Used By |
|---|---|---|
| Sales Tax | Tax on final retail sales only | United States |
| VAT (Value Added Tax) | Tax on value added at each stage | European Union, most countries |
| GST (Goods & Services Tax) | Comprehensive tax on goods and services | Canada, Australia, India |
| Use Tax | Tax on items purchased out-of-state | US states with sales tax |
Multiple jurisdictions can layer taxes
Tennessee, Louisiana, Washington, Arkansas have highest combined rates
| Transaction Type | Taxable | Notes |
|---|---|---|
| Retail Purchases | Yes | Standard sales tax applies |
| Online Purchases | Varies | Depends on nexus laws |
| Business-to-Business | Usually No | Resale certificates often used |
| Services | Varies | Some states tax certain services |
| Digital Products | Varies | Evolving area of tax law |
Economic Nexus: Many states require tax collection based on sales volume or transaction count, regardless of physical presence.
Marketplace Facilitators: Platforms like Amazon often collect and remit sales tax on behalf of sellers.
Remote Sales: Supreme Court's Wayfair decision (2018) changed online sales tax landscape significantly.
Drop Shipping: Complex rules apply when goods ship directly from supplier to customer.
| Situation | Tax Implication | Consumer Action |
|---|---|---|
| Cross-Border Shopping | Use tax may apply | Declare purchases on tax returns |
| Online Purchases | Increasingly taxed | Factor tax into price comparisons |
| Big Ticket Items | Significant tax amount | Consider shopping in lower-tax areas |
| Business Purchases | May be exempt | Use proper exemption certificates |
Digital Services Tax: Some jurisdictions are implementing taxes on digital services and subscriptions.
Streamlined Sales Tax: Initiative to simplify sales tax compliance across states.
Cryptocurrency: Emerging rules for taxation of digital currency transactions.
Remote Work: COVID-19 has complicated sales tax for remote workers and businesses.
| Country | Tax Type | Standard Rate |
|---|---|---|
| United States | Sales Tax | 0% - 11% (varies by state) |
| Canada | GST/HST | 5% - 15% |
| United Kingdom | VAT | 20% |
| Germany | VAT | 19% |
| Japan | Consumption Tax | 10% |