Sales Tax Calculator
Both directions. Working backwards from a receipt total is the harder one, because you divide rather than subtract, and that is where people go wrong.
How the math works
Adding tax: total = price x (1 + rate). Removing tax: price = total / (1 + rate), then tax is the difference. Subtracting the percentage from the total is not the same thing and always gives too little.
Common questions
- How do I work out the price before sales tax?
- Divide the total by 1 plus the rate. At 7.25 percent, divide by 1.0725. Subtracting 7.25 percent from the total gives a slightly wrong answer, because the tax was calculated on the smaller pre-tax figure.
- What is the sales tax rate where I live?
- It is usually a state rate plus a county or city rate, so two towns in the same state often differ. Combined rates run from zero in Delaware, Montana, New Hampshire and Oregon to over 10 percent in parts of Louisiana and Tennessee.
- Is everything taxed at the same rate?
- No. Many states exempt groceries, prescription drugs and sometimes clothing, or tax them at a reduced rate. If a receipt total does not match this, a reduced-rate item is the usual reason.
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