Add sales tax to a price to get the total, or work backwards from a total that already includes tax to find the original price and the tax paid.
How to calculate sales tax
Sales tax = Price × tax rate
Total = Price × (1 + tax rate)
To remove tax from a total that already includes it, divide rather than subtract:
Price before tax = Total ÷ (1 + tax rate)
Subtracting the tax rate from the total (for example, 8.25% of $129.90) gives the wrong answer, because the tax was calculated on the smaller pre-tax price.
Worked examples
- Adding tax: a $120 item at 8.25% has $9.90 tax, for a total of $129.90.
- Removing tax: a receipt total of $129.90 at 8.25% means the pre-tax price was $129.90 ÷ 1.0825 = $120.00.
Sales tax in the U.S.
Sales tax is set by states and often added to by counties and cities, so the combined rate depends on where you buy. A few states have no statewide sales tax, and many exempt or reduce tax on groceries or medicine. Check your state revenue department for the exact rate at your address.
Frequently asked questions
Is sales tax charged on shipping?
It depends on the state and how shipping is charged. Some states tax it, others do not.
Is VAT the same as sales tax?
Both are consumption taxes, but VAT (used in Europe and many other countries) is usually already included in the shelf price. The "remove tax" mode works for VAT too.
Related tools
Results are estimates for planning and education only. They are not financial, tax, legal or medical advice. Check important numbers with a qualified professional.