How sales tax is calculated
US sales tax is a percentage added to the price at the till. To find it, turn the rate into a decimal and multiply.
Example: you buy a $40.00 lamp in a Texas city where the combined rate is 8.25% (6.25% state plus 2% local).
- Tax: 40.00 × 0.0825 = $3.30
- Total: 40.00 + 3.30 = $43.30
The calculator uses exact decimal arithmetic and rounds the tax half up to the nearest cent, the usual method on US receipts. Some states round slightly differently, for example by using a bracket table for very small sales, so a receipt can be a cent away now and then.
Working back from a total (reverse sales tax)
If you only have a receipt total and need the price before tax, for an expense claim or bookkeeping, divide by 1 plus the rate.
Example: a receipt shows $54.00 and the rate is 8%. The price before tax is 54 ÷ 1.08 = $50.00, and the tax is $4.00.
A common mistake is to take 8% off the total: 54 × 0.92 = $49.68. That is wrong, because the 8% was charged on the smaller pre-tax price, not on the total. The calculator rounds the pre-tax price to the cent and then subtracts, so the two parts always add back up to your total.
State rate plus local rates
Your rate is usually made of several layers: the statewide rate, then county, city and special district rates for the place of sale. The table below shows a few states as of 1 July 2026, using the Tax Foundation’s midyear 2026 report. The full list for all 50 states and DC is in the calculator above.
| State | State rate | Average local | Combined average |
|---|---|---|---|
| California | 7.25% | 1.78% | 9.03% |
| Texas | 6.25% | 1.95% | 8.20% |
| New York | 4.00% | 4.54% | 8.54% |
| Florida | 6.00% | 0.98% | 6.98% |
| Illinois | 6.25% | 2.73% | 8.98% |
| Louisiana | 5.00% | 5.13% | 10.13% |
| Oregon | none | none | 0% |
The “average local” figure is weighted by population, so it is only a guide. In New York City, for example, the combined rate is 8.875%, well above the state average. For an exact rate, look up the address on your state revenue department’s website, then type the local part into the optional field. For every state’s rate, grocery and clothing rules and a calculator preset to that state, see sales tax rates by state, or go straight to Texas, California or Alabama.
Example with a local rate
A $1,200 laptop bought in Chicago. Illinois charges 6.25% and Chicago-area local taxes bring the combined general rate to 10.25%.
- Tax: 1,200 × 0.1025 = $123.00
- Total: $1,323.00
Choose Illinois, type 4 in the local rate box, and the calculator shows the same answer.
States with no sales tax
Five states have no statewide sales tax: Alaska, Delaware, Montana, New Hampshire and Oregon. Alaska still lets boroughs and cities charge local sales taxes, so shoppers there often pay some tax. Montana has local resort taxes in some tourist towns, and New Hampshire taxes meals and rooms separately.
Things the rate alone does not tell you
- Exemptions. Many states exempt or reduce tax on groceries, prescription drugs or clothing. Some tax services, others do not.
- Hawaii, New Mexico and Arizona levy taxes on the seller’s receipts rather than a classic sales tax. Sellers usually pass them on, so they look like sales tax on a receipt.
- Use tax. If you buy something out of state without paying sales tax, your home state may expect you to pay use tax at the same rate.
- Online orders are generally taxed at the rate for the delivery address.
This calculator applies one rate to the amount you enter. It is a quick estimating tool, not tax advice. For business filings, use the rates your state publishes for each location.
Related calculators
Shopping a sale? The discount calculator works out the price after stacked discounts and can add tax at the end. For prices that include VAT, in the UK, EU or Gulf, use the VAT calculator. To see how much of your salary is left after federal and state income tax, try the paycheck calculator.