Sales Tax Calculator
Enter a price and a tax rate to find the tax amount and total — or switch modes to work backward from a tax-included total to find the original pre-tax price.
How the Sales Tax formula works
Forward and reverse sales tax math:
Add tax: Total = Price × (1 + Tax rate) Remove tax: Pre-tax price = Total / (1 + Tax rate)
Step-by-step calculation
- Convert the tax rate from a percentage to a decimal.
- To add tax: multiply the price by (1 + tax rate) to get the total.
- To remove tax: divide the tax-included total by (1 + tax rate) to recover the pre-tax price.
Worked example
A $45 item with 7.25% sales tax: Tax = 45 × 0.0725 = $3.26. Total = $48.26. In reverse, if a receipt shows $48.26 total at 7.25% tax, pre-tax price = 48.26 / 1.0725 = $45.00.
Frequently asked questions
Why do sales tax rates vary so much by location?
In the US, sales tax is set at the state level and often layered with additional county or city tax, so the combined rate can vary significantly even between neighboring areas — check your local rate for accuracy.
Is sales tax the same as VAT?
No — sales tax is charged once, at the final point of sale to the consumer. VAT (value-added tax), used in many countries outside the US, is charged incrementally at each stage of production, though the end consumer effectively bears the full amount either way.