Sales Tax Calculator

Calculate sales tax when you know the pre-tax price and sales tax rate. Alternatively, calculate the pre-tax price by entering the total price and sales tax rate.

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FAQ

How do you calculate sales tax?

To calculate sales tax, multiply the pre-tax price by the sales tax rate. Then add the sales tax amount to the pre-tax price to get the total price.

Example:
If the pre-tax price is $100 and the sales tax rate is 8%, the sales tax amount is $8, so the total price is $108.

How do I calculate the pre-tax price?

If you know the total price and sales tax rate, divide the total price by 1 plus the sales tax rate as a decimal.

Example:
If the total price is $108 and the sales tax rate is 8%, divide $108 by 1.08 to get a pre-tax price of $100.

Is sales tax the same as VAT?

Sales tax and VAT are both taxes on purchases, but they are collected differently. Sales tax is usually added at checkout, while VAT is often included in the displayed price.

What is the formula for sales tax amount?

The sales tax amount is the pre-tax price multiplied by the sales tax rate, divided by 100.

Formula:
Sales tax amount = pre-tax price × sales tax rate / 100

How do I calculate the total price with sales tax?

Add the sales tax amount to the pre-tax price. You can also multiply the pre-tax price by 1 plus the tax rate as a decimal.

Example:
With 8% tax, multiply the pre-tax price by 1.08.

How do I remove sales tax from a total?

Divide the total price by 1 plus the sales tax rate as a decimal. The result is the pre-tax price.

Example:
If the total is $108 and the tax rate is 8%, divide $108 by 1.08.

Why does sales tax vary by location?

Sales tax can include state, county, city and special district rates. The total rate depends on where the sale happens and which tax rules apply to the item.

Is sales tax calculated before or after discounts?

Sales tax is usually calculated after discounts are applied, because the discounted price is the amount paid. Rules can vary, especially for coupons or rebates, so exact handling depends on local tax rules.