Sales Tax Calculator

Instantly calculate sales tax and total price, or work backward from a total to find the original price and tax amount. This tool provides quick, accurate calculations for shoppers, business owners, and anyone needing to budget for taxes.

Select calculation mode:

Results

Price before Tax

$100.00

Sales Tax Amount

$8.50

Total Price

$108.50

Data Source and Methodology

This calculator uses fundamental arithmetic principles for percentage calculations. The formulas are standard mathematical expressions used in financial and retail contexts to determine component values of a total sum.

All calculations are based rigorously on the formulas provided below. No assumptions are made about specific tax jurisdictions, which can have highly complex rules. This tool provides a precise calculation based *only* on the numbers you provide.

The Formulas Explained

The calculations are based on three primary modes:

1. Calculating Total Price

To find the sales tax amount and the total price, the calculator uses these formulas:

$$SalesTax = PriceBeforeTax \times \left( \frac{TaxRate}{100} \right)$$

$$TotalPrice = PriceBeforeTax + SalesTax$$

2. Calculating Original Price (Reverse Calculation)

To find the original price and tax amount from a total price, it uses:

$$PriceBeforeTax = \frac{TotalPrice}{1 + \left( \frac{TaxRate}{100} \right)}$$

$$SalesTax = TotalPrice - PriceBeforeTax$$

3. Calculating the Tax Rate

To find the tax rate when you know the price and the tax amount:

$$TaxRate(\%) = \left( \frac{SalesTax}{PriceBeforeTax} \right) \times 100$$

Glossary of Variables

  • Price before Tax ($): The net price of an item or service before any sales tax is applied. This is also known as the "sticker price" or "subtotal".
  • Sales Tax Rate (%): The percentage of the pre-tax price that is collected as tax. This rate is set by a government body (state, county, or city).
  • Sales Tax Amount ($): The specific dollar amount of tax calculated by applying the tax rate to the pre-tax price.
  • Total Price ($): The final cost to the customer, which is the sum of the Price before Tax and the Sales Tax Amount.

How it Works: A Step-by-Step Example

Let's walk through a common scenario. You want to buy a laptop that costs $1,200, and your local sales tax rate is 7.25%.

  1. Select Mode: You would use the default "Calculate Total Price" mode.
  2. Enter Inputs:
    • Price before Tax: $1,200
    • Sales Tax Rate: 7.25
  3. Step 1: Calculate Tax Amount

    The calculator first converts the percentage to a decimal: $7.25\% = 0.0725$.

    $SalesTax = \$1,200 \times 0.0725 = \$87.00$

  4. Step 2: Calculate Total Price

    It then adds the tax amount to the original price.

    $TotalPrice = \$1,200 + \$87.00 = \$1,287.00$

  5. Result: The calculator shows a sales tax of $87.00 and a total price of $1,287.00.

Frequently Asked Questions (FAQ)

What is sales tax?

Sales tax is a consumption tax imposed by a government on the sale of goods and services. It is collected by the seller at the point of sale and then paid to the government. This calculator helps determine that tax amount.

How do I use the reverse sales tax calculation?

Select the "Calculate Original Price" mode. This is useful if you only have a final receipt and want to know the pre-tax price and tax amount. For example, if your receipt total is $53.50 and you know the tax rate was 7%, the calculator will show you the original price was $50.00 and the tax was $3.50.

Does this calculator work for my state, city, or country?

This calculator performs a standard percentage calculation. It works perfectly if you know your total, combined sales tax rate. In the United States, tax rates are very complex and can be a combination of state, county, and city taxes. Always check with your local government's department of revenue for the exact, official rate for your specific location ("tax jurisdiction").

What is the difference between sales tax and VAT?

Sales tax is typically added at the final point of sale to the consumer. Value-Added Tax (VAT) is collected at *every* stage of the supply chain (from production to sale). While both are consumption taxes, their collection methods are different. This calculator is designed for the sales tax model.

Is sales tax applied to all goods and services?

No. Tax laws vary significantly. Many jurisdictions exempt essential items like groceries, prescription drugs, and some types of clothing. Services (like legal advice or landscaping) may or may not be taxed depending on local laws. This calculator assumes the price you enter is for a "taxable" item or service.

Can I use this to calculate tax on a car purchase?

Yes, you can use it for a basic estimate. However, vehicle sales tax can be more complex, sometimes involving trade-in values, "use tax" instead of sales tax, or different rates. Use this tool for an estimate, but confirm the final amount with your dealership or Department of Motor Vehicles (DMV).

Tool developed by Ugo Candido. Contents verified by the CalcDomain Editorial Board.

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