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Sales Tax Calculator

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Calculate sales tax and total price from a pre-tax amount, or work backward from a total to find the original pre-tax price.

Sales Tax Calculator

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Total with tax
$92.01
Tax amount
$7.01

The formulas

Price to total: Total = Price x (1 + Tax rate) Total to price: Price = Total / (1 + Tax rate)
Example

An $85 item at 8.25% sales tax: tax = 85 x 0.0825 = $7.01, total = $92.01. Working backward from a $92.01 total at the same rate returns the original $85.00 price.

Step-by-step guide

  1. Choose your direction - starting from a pre-tax price, or working backward from a tax-included total.
  2. Enter the amount and tax rate.
  3. Read the result - useful for pricing, receipts, or verifying a total.

Why "total ÷ (1 + rate)" and not "total - tax %"

A common error when reverse-calculating is subtracting the tax percentage directly from the total (like taking 8.25% off $92.01), which gives a slightly wrong answer. Because the tax was originally calculated on the pre-tax price, not the total, you have to divide by (1 + rate) instead of simply subtracting rate% from the total - otherwise the math double-counts the relationship between price and tax.

Common mistakes

Subtracting the tax rate percentage directly from a tax-included total to find the pre-tax price - divide by (1 + rate) instead, not simply subtract the percentage.
Using a single tax rate across an order with mixed taxable and non-taxable items - many jurisdictions exempt categories like groceries or clothing, which need to be calculated separately.

Frequently asked questions

Where do I find my local sales tax rate?

Sales tax rates are set at the state and often also city/county level, so the combined rate varies by exact location. Check your state's department of revenue website for current rates in your specific area.

Does this handle multiple tax rates stacked together (state + local)?

Yes - simply enter the combined total rate (state plus any local add-ons) as a single percentage, since they apply the same way mathematically as one blended rate.

Is this the same as VAT?

The basic math is similar, but VAT (value-added tax, common outside the US) is typically applied and collected at each stage of production, not just at final sale. For a dedicated VAT tool, see our VAT Calculator.

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