Business
Sales Tax Calculator
Works sales tax, where the rate depends on where the customer is.
Result
US sales tax varies by state, county and city, and what is taxable differs by trade. Labour is exempt in some jurisdictions and taxable in others. Check your local rules.
Get a Free Business AuditHow the calculation works
The taxable amount multiplied by the combined rate for the applicable jurisdiction, which commonly layers state, county, city and special district rates. Most states source the tax to the destination, meaning the customer's location rather than the seller's, which is why a single rate rarely applies across a customer base.
What moves the number
- The customer's location and the combined local rate.
- Whether the item or service is taxable in that state.
- Exemptions and exemption certificates.
- Whether the business has an obligation to collect there.
Where this one goes wrong
Whether a business must collect in a state depends on its connection to that state, and economic activity alone can create that obligation without any physical presence, with thresholds that differ by state. That is a compliance question rather than an arithmetic one and it is worth professional advice if you sell across state lines. What is taxable also differs by state, particularly for services, so the same transaction can be taxable in one state and not in another.
Before you quote
- Use the destination jurisdiction's combined rate.
- Check whether the item or service is taxable in that state.
- Get advice on where you have an obligation to collect.
Where the rules come from
Questions
About this calculator
Which rate applies to a sale?
Usually the one for the customer's location, since most states source sales tax to the destination. The combined rate layers state, county, city and special district rates, which is why a single rate rarely covers a customer base.
Do I have to collect tax in every state I sell into?
Only where you have an obligation, and economic activity alone can create one without physical presence, with thresholds differing by state. It is a compliance question worth professional advice if you sell across state lines.
Are services taxable?
It depends entirely on the state, and the variation is wide. The same service can be taxable in one state and exempt in another, which is why the item's treatment has to be checked per jurisdiction rather than assumed.
The formula
pre-tax = total ÷ (1 + rate), never total minus rate
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How to use this calculator
- Amount ($). Enter your own figure; the page starts at $1,250.
- Sales tax rate (%). Enter your own figure; the page starts at 8.25%.
- Direction. Enter your own figure; the page starts at Add tax to this amount.
The result updates as you type, so you can try a figure, see what it does to total including tax, and change it back. Nothing you enter is sent anywhere or saved.
A worked example
These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.
What goes in
| Input | Value |
|---|---|
| Amount | $1,250 |
| Sales tax rate | 8.25% |
| Direction | Add tax to this amount |
What comes out
| Result | Value |
|---|---|
| Total including tax main result | $1,353.13 |
| Amount before tax | $1,250.00 |
| Tax amount | $103.13 |
| Tax as a share of the total | 7.62% |
Adding 8.25% tax gives a total of $1,353.13, of which $103.13 is tax.
How sensitive the answer is
Holding everything else steady and changing only amount, this is what happens to total including tax. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Amount ($) | Total including tax |
|---|---|
| $625 | $676.56 |
| $938 | $1,015.39 |
| $1,250 example above | $1,353.13 |
| $1,875 | $2,029.69 |
| $2,500 | $2,706.25 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Amount ($)
- A money amount, starting at $1,250.
- Sales tax rate (%)
- A percentage, between 0 and 50, starting at 8.25%.
- Direction
- Choose from Add tax to this amount, This amount already includes tax.
What the results tell you
| Result | What it is |
|---|---|
| Total including tax | The headline result. A money figure. |
| Amount before tax | A money figure. |
| Tax amount | A money figure. |
| Tax as a share of the total | A percentage. |
Where these figures usually mislead
Business calculations assume the inputs are steady. Seasonality, a few large customers, and slow payment all break that assumption. A figure that looks healthy annually can still leave you short in a given month.
Keep going
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