Sales tax is added at the point of sale in many US states and other jurisdictions, and the rate varies by state, county, and even city. This calculator adds sales tax to a pre-tax price, or works backward to find the pre-tax price from a tax-inclusive total.
The formulas
For an $80 item at a 7.25% tax rate: total = 80 × 1.0725 = $85.80. Working backward from an $85.80 total: price = 85.80 ÷ 1.0725 = $80.00.
Worked examples
| Price | Tax rate | Total |
|---|---|---|
| $50.00 | 6% | $53.00 |
| $120.00 | 8.875% | $130.65 |
| $19.99 | 5% | $20.99 |
Common mistakes
- Subtracting the tax percentage directly from a total. Just like with VAT, removing tax from a total requires division by (1 + rate), not simple subtraction.
- Using a stale or wrong local rate. Combined state, county, and city sales tax rates change periodically and vary significantly by location — always confirm the current local rate.
References
- Consumer Financial Protection Bureau — general consumer finance guidance
Frequently asked questions
How do I calculate sales tax?
Multiply the pre-tax price by 1 plus the tax rate as a decimal. For a 7.25% rate, multiply by 1.0725.
How do I find the pre-tax price from a total?
Divide the tax-inclusive total by 1 plus the tax rate as a decimal, not by subtracting the tax percentage directly.
Why do sales tax rates vary so much?
In the US, sales tax is set at the state level and often combined with additional county and city taxes, which is why the total rate can vary significantly even within the same state.