Sales Tax Calculator

Sales tax
%
Net price
$
Gross price
$
Tax amount
$

Sales tax calculator solves multiple problems around the tax imposed on the sale of goods and services. It can calculate the gross price based on the net price and the tax rate, or work the other way around - it's also a reverse sales tax calculator. The sales tax rate in the United State ranges from 0% to 15.5% depending on the state and the type of goods and services. It's quite likely that you'll find our markup, margin and Margin with sales tax calculators handy if you're job is in any way related to sales. First, let's learn how to calculate sales tax, what it looks like it various US states and what's its history.

How to calculate sales tax

  1. Find out the sales tax rate. In our example, let's make it 4%.
  2. Find out the net price of a product. Let's use 45.
  3. Multiply your net price by 4%, so by 0,04 to find out the tax amount: 45 * 0,04 = 1,8.
  4. Add the tax amount to the net price to find out the gross price: 45 + 1,8 = 46,8.

As you can see, this is exactly the same as how you calculate percent increase ... or if you want to find out the pre-tax price whilst using our calculator, simply input the gross price and the sales tax rate to perform the reverse sales tax calculation!

Sales tax rate in different states of the US

As mentioned below or as you may already be aware of, different states within the US have different sales tax values. So that you don't have to know them all by heart, we present them to you in form of a table:

State tax rates in the US
State State tax rate Range of local/city tax rates
Alabama 4.000% 0% - 8.5%
Alaska 0.000% 0% - 7.5%
Arizona 5.600% 0% - 7.1%
Arkansas 6.500% 0% - 5.50%
California 7.500% 0% - 2.5%
Colorado 2.900% 0% - 8%
Connecticut 6.350% 0% - 1%
Delaware 0.000% 0%
District of Columbia 5.750% 0%
Florida 6.000% 0% - 1.5%
Georgia 4.000% 1% - 4%
Hawaii 4.000% 0% - 0.5%
Idaho 6.000% 0% - 3%
Illinois 6.250% 0% - 4.75%
Indiana 7.000% 0%
Iowa 6.000% 0% - 2%
Kansas 6.500% 0% - 5%
Kentucky 6.000% 0%
Louisiana 4.000% 0% - 7.75%
Maine
5.500% 0%
Maryland 6.000% 0%
Massachusetts 6.250% 0%
Michigan 6.000% 0%
Minnesota 6.875% 0% - 1%
Mississippi 7.000% 0% - 1%
Missouri 4.225% 0.5% - 6.625%
Montana 0.000% 0%
Nebraska 5.500% 0% - 2%
Nevada 6.85% 0% - 1.3%
New Hampshire 0.000% 0%
New Jersey 7.000% 0%
New Mexico 5.125% 0.125% - 6.625%
New York 4.000% 0% - 5%
North Carolina 4.750% 2% - 3%
North Dakota 5.000% 0% - 3%
Ohio 5.750% 0% - 2.25%
Oklahoma 4.500% 0% - 6.50%
Oregon 0.000% 0%
Pennsylvania 6.000% 0% - 2%
Rhode Island 7.000% 0%
South Carolina 6.000% 0% - 3%
South Dakota 4.000% 0% - 2%
Tennessee 7.000% 1.5% - 2.75%
Texas 6.250% 0% - 2%
Utah 4.700% 1% - 6.25%
Vermont 6.000% 0% - 1%
Virginia 4.300% 1% - 2.2%
Washington 6.500% 0.5% - 3.10%
West Virginia 6.000% 0% - 1%
Wisconsin 5.000% 0% - 1.75%
Wyoming 4.000% 0% - 4%

History

Although we will not go into in-depth history of the sales tax, it is worth noticing that it has originated as early as in the Ancient Egypt and then in Ancient Greece. However, the one that appeals to us, so the one used in the US was first enacted in 1791 on whiskey. The 20th century brought the most changes with various states, one by one or collectively establishing their sales tax values. Today, only five states do not have sales taxes: Alaska, Delaware, Montana, New Hampshire and Oregon.

Sales tax vs. value added tax (VAT)

Many think sales tax and VAT are the same thing. From the consumer's perspective they're alike - some part of the sale price (the net price) goes to the selling party and the government gets a certain percentage on top of that. The main difference is that the sales tax is added only on the retail level, while VAT is imposed on every level (from the factory, through wholesalers to retailers). Ultimately, only the consumer is taxed, since previous links in the chain are refunded the amount of VAT they paid when they made the purchase. This way may sound more complicated, but is effective - the government always gets the tax it's owed.