Sales Tax Calculator

Frequently Asked Questions

• How is sales tax calculated?

  Sales tax = price × tax rate. To find pre-tax price from a tax-included total: pre-tax = total ÷ (1 + tax rate).

• Which US states have no sales tax?

  Five states have no general sales tax: Alaska, Delaware, Montana, New Hampshire, Oregon. Some Alaska localities do charge local sales tax.

• What's the highest US sales tax?

  Tennessee has the highest combined average state + local rate at ~9.55%. Louisiana, Arkansas, and Washington also have very high combined rates.

• Why are local rates different from state rates?

  Counties, cities and special districts (transportation, school) can add their own sales tax on top of the state rate, sometimes adding 2-5% extra.

• How do I add tax vs remove tax?

  Add: result = price × (1 + tax%). Remove (when total includes tax): pre-tax = total ÷ (1 + tax%); tax amount = total ? pre-tax.

• Are services taxed the same as goods?

  It varies by state. Most states tax most goods but exempt many services. Some states (Hawaii, New Mexico, South Dakota) tax nearly all services.

• Are groceries taxed?

  Most states exempt grocery food from sales tax or apply a reduced rate. Prepared food and restaurant meals are usually fully taxed.

• Does this support international VAT?

  Yes — use the manual rate entry. Enter your VAT rate (e.g., 20% UK, 19% Germany, 10% Australia GST) and the calculation works the same way.

• How do online purchases get taxed?

  After the 2018 Wayfair decision, US online retailers must collect sales tax in any state where they have economic nexus. The rate is based on the buyer's shipping address.

• Is sales tax deductible?

  In the US, you can deduct either state income tax or state sales tax (not both) on your federal return if you itemize. Use IRS tables or save receipts for major purchases.