Sales Tax Calculator

What is Sales Tax?

Sales tax is a percentage-based tax added to the sale of goods and services, collected by retailers and remitted to the government. It's commonly used to fund public services and varies by location. Understanding sales tax helps you know the true cost of purchases and stay compliant with local laws.

How to Use the Sales Tax Calculator

Type the price of your item or the total price (for reverse calculation).
Select your currency and enter the sales tax rate as a percentage.
Choose whether to add or remove sales tax.
Click "Calculate" to see your result instantly.
See the breakdown of tax, total, and original price.

How To Calculate's free Sales Tax Calculator is mobile-friendly, accurate, and easy to use for shoppers, business owners, and anyone needing quick tax math.

How is Sales Tax Calculated? (Formula Explained)

The standard sales tax formula is:

Total = Price + (Price × Rate / 100) Tax = Price × Rate / 100

To remove sales tax (find the original price from a total):

Price = Total / (1 + Rate / 100) Tax = Total - Price

Price: The original price before tax
Total: The final price after tax
Rate: The sales tax percentage

Example: Sales Tax Calculation Step-by-Step

Suppose you buy a laptop for $1,000 and your local sales tax rate is 8.5%:

Tax = $1,000 × 8.5 / 100 = $85
Total = $1,000 + $85 = $1,085

If you know the total price ($1,085) and want to find the original price before tax:

Price = $1,085 / 1.085 ≈ $1,000
Tax = $1,085 - $1,000 = $85

Why Sales Tax Matters for You

Sales tax affects your total spending, business pricing, and compliance with tax laws. Knowing how to calculate it helps you budget, avoid surprises at checkout, and ensure your business collects the right amount for the government.

Normal / Average Sales Tax Ranges

U.S. state sales tax rates: 0% – 7.25% (plus local rates)
EU VAT rates: 17% – 27%
Canada GST: 5% (plus provincial rates)
Japan consumption tax: 10%
Turkey VAT: 1% – 20%

Benefits of Tracking Your Sales Tax

Accurate budgeting for purchases
Transparency for business transactions
Compliance with local tax laws
Quick comparison of prices across regions
Better financial planning for large purchases

Limitations of This Calculator

Does not account for tax-exempt items or special local rules
Assumes a single tax rate applies to the whole amount
Results are for informational purposes, not legal or tax advice
Check your local rates for the most accurate results

FAQs About the Sales Tax Calculator

Is this sales tax calculator accurate?
Yes, it uses standard formulas and is updated for current rates, but always check your local tax rules.
Can I use this for VAT or GST?
Yes, just enter the correct rate for your region.
How often should I check sales tax rates?
Rates can change yearly or by region, so check before major purchases or business changes.
Does it work for reverse calculation?
Yes, select 'Remove Sales Tax' to find the original price from a total.
Can I compare different currencies?
Yes, select your preferred currency for the calculation.
Does it include local or city taxes?
No, enter the combined rate if your area has multiple taxes.
Is this tool free?
Yes, How To Calculate's Sales Tax Calculator is 100% free to use.
Can I use this for business invoicing?
Yes, it's suitable for both personal and business use.