How to Calculate Sales Tax
In case you are interested in doing the calculation manually, here is how to calculate sales tax:
- Divide the sales tax percentage by 100 (or move the decimal point two places to the left) to get the decimal equivalent of the rate. So if the tax rate were 7.375%, the decimal equivalent would be .07375.
- Multiply the taxable price by the decimal equivalent of the rate. For example, if the taxable price was $50.00 and the rate was 7.375%, then the sales taxes would be $3.69 ($50 x .07375 = 3.6875 = $3.69 when rounded to the nearest cent).
How to Calculate The Before-Tax Price When Tax Is Included
If you know the sales tax rate and the price with tax included, here is how you calculate the before-tax price:
- Divide the sales tax percentage by 100 (or simply move the decimal point two places to the left) to get the decimal equivalent of the rate. So if the tax rate was 5%, the decimal equivalent would be .05 (5 ÷ 100 = 0.05).
- Add 1 to decimal rate and then divide the tax-included price by that amount. For example, if the tax-included price is $100, and the rate is 5%, then the before-tax price would be $95.24 ($100 ÷ 1.05 = 95.24 rounded).
To save you from doing the calculations manually, I have included the following reverse sales tax calculator for calculating the before-tax price and sales tax amount from the final amount paid.
How to Calculate the Sales Tax Rate From a Purchase Receipt
If you know the base price and the price paid after tax, but not the rate itself, here is how you calculate the rate:
- Subtract the base price from the total price to get the sales tax amount. So if the before tax price is $100 and the after tax price is $106.88, the sales tax amount would be $6.88 ($106.88 - $100 = $6.88).
- Divide the sales tax amount by the before tax price. For example, if the sales tax amount is $6.88, and the before tax price is $100, then the decimal tax rate would be 0.0688 ($6.88 ÷ $100 = .0688 rounded).
- Multiply the decimal tax rate by 100. So if the decimal rate is 0.0688, then the percentage rate would be 6.88% (0.0688 x 100 = 6.88%).
For your convenience, I have included the following mini calculator to find the sales tax rate from the before and after-tax purchase prices.
State Sales Tax Table
The state sales tax feature is based on the State and Local Sales Tax Rates as of January 1, 2020 table used with permission from taxfoundation.org. If you would like to see a list of states without sales tax, sort the chart by "State Rate" and the states with no sales tax will sort to the top of the table.
| State | State Rate | Avg. Local Rate | Total Rate |
|---|---|---|---|
| Alabama (AL) | 4.000% | 5.220% | 9.220% |
| Alaska (AK) | none | 1.760% | 1.760% |
| Arizona (AZ) | 5.600% | 2.800% | 8.400% |
| Arkansas (AR) | 6.500% | 2.970% | 9.470% |
| California (CA) | 7.250% | 1.410% | 8.660% |
| Colorado (CO) | 2.900% | 4.750% | 7.650% |
| Connecticut (CT) | 6.350% | none | 6.350% |
| Delaware (DE) | none | none | none |
| District of Columbia (DC) | 6.000% | none | 6.000% |
| Florida (FL) | 6.000% | 1.050% | 7.050% |
| Georgia (GA) | 4.000% | 3.310% | 7.310% |
| Hawaii (HI) | 4.000% | 0.440% | 4.440% |
| Idaho (ID) | 6.000% | 0.030% | 6.030% |
| Illinois (IL) | 6.250% | 2.830% | 9.080% |
| Indiana (IN) | 7.000% | none | 7.000% |
| State | State Rate | Avg. Local Rate | Total Rate |
| Iowa (IA) | 6.000% | 0.940% | 6.940% |
| Kansas (KS) | 6.500% | 2.180% | 8.680% |
| Kentucky (KY) | 6.000% | none | 6.000% |
| Louisiana (LA) | 4.450% | 5.070% | 9.520% |
| Maine (ME) | 5.500% | none | 5.500% |
| Maryland (MD) | 6.000% | none | 6.000% |
| Massachusetts (MA) | 6.250% | none | 6.250% |
| Michigan (MI) | 6.000% | none | 6.000% |
| Minnesota (MN) | 6.875% | 0.580% | 7.460% |
| Mississippi (MS) | 7.000% | 0.070% | 7.070% |
| Missouri (MO) | 4.225% | 3.960% | 8.180% |
| Montana (MT) | none | none | none |
| Nebraska (NE) | 5.500% | 1.430% | 6.930% |
| Nevada (NV) | 6.850% | 1.470% | 8.320% |
| New Hampshire (NH) | none | none | none |
| State | State Rate | Avg. Local Rate | Total Rate |
| New Jersey (NJ) | 6.650% | -0.030 | 6.600% |
| New Mexico (NM) | 5.125% | 2.690% | 7.820% |
| New York (NY) | 4.000% | 4.520% | 8.520% |
| North Carolina (NC) | 4.750% | 2.220% | 6.970% |
| North Dakota (ND) | 5.000% | 1.860% | 6.860% |
| Ohio (OH) | 5.750% | 1.420% | 7.170% |
| Oklahoma (OK) | 4.500% | 4.440% | 8.940% |
| Oregon (OR) | none | none | none |
| Pennsylvania (PA) | 6.000% | 0.340% | 6.340% |
| Rhode Island (RI) | 7.000% | none | 7.000% |
| South Carolina (SC) | 6.000% | 1.460% | 7.460% |
| South Dakota (SD) | 4.500% | 1.900% | 6.400% |
| Tennessee (TN) | 7.000% | 2.530% | 9.530% |
| Texas (TX) | 6.250% | 1.940% | 8.190% |
| Utah (UT) | 6.100% | 1.080% | 7.180% |
| State | State Rate | Avg. Local Rate | Total Rate |
| Vermont (VT) | 6.000% | 0.220% | 6.220% |
| Virginia (VA) | 5.300% | 0.350% | 5.650% |
| Washington (WA) | 6.500% | 2.710% | 9.210% |
| West Virginia (WV) | 6.000% | 0.410% | 6.410% |
| Wisconsin (WI) | 5.000% | 0.460% | 5.460% |
| Wyoming (WY) | 4.000% | 1.340% | 5.340% |
Source: Tax Foundation, taxfoundation.org. See the source for exceptions not included here.
If there is anything I can add to this "Learn" section to further your understanding sales tax, please let me know in the feedback form located beneath the calculator.
