Sales Tax Calculator
Calculate sales tax for any US state or locality. Find rates and totals.
Formula
Sales Tax = Purchase Price × Tax Rate Total Price = Purchase Price + Sales Tax Tax Rate = State Rate + County Rate + City Rate + Special District Rate
How to Calculate
Sales tax in the US is a consumption tax collected at the point of sale. The rate varies by state, county, city, and sometimes special taxing districts. To calculate, multiply the pre-tax price by the total applicable sales tax rate.
Most states have a base sales tax rate, but the actual rate you charge depends on the buyer's location (destination-based) or your location (origin-based), depending on the state's sourcing rules. Five states have no state sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon—though Alaska allows local jurisdictions to impose their own sales tax.
For businesses, sales tax compliance involves determining nexus (where you have a tax obligation), registering with state tax authorities, collecting the correct rate, and remitting taxes on schedule—usually monthly, quarterly, or annually depending on your volume. The 2018 South Dakota v. Wayfair Supreme Court decision established that states can require remote sellers to collect sales tax based on economic nexus (typically $100,000 in sales or 200 transactions in the state).
Worked Example
A business in Los Angeles, CA sells a $500 product:
California state rate: 7.25% Los Angeles County: 0.25% City of Los Angeles: 0.00% (included in county) Special districts: 2.25% Total rate: 9.50%
Sales Tax = $500 × 9.50% = $47.50 Total charged to customer: $500 + $47.50 = $547.50
The business must remit $47.50 to the California Department of Tax and Fee Administration.
Why It Matters
Incorrectly calculating or failing to collect sales tax can result in significant penalties, interest, and back-tax assessments. With over 13,000 taxing jurisdictions in the US, each with different rates and rules, sales tax compliance is one of the most complex obligations for small businesses, especially those selling online across state lines.
Practical Tips
- ✓Use tax automation software if you sell in multiple states—manual tracking across 13,000+ jurisdictions is impractical.
- ✓Check for product-specific exemptions—many states exempt groceries, clothing, or digital goods.
- ✓File sales tax returns on time even if you collected zero tax—most states require it.
- ✓Review your economic nexus status annually as your sales footprint expands.
Frequently Asked Questions
Which states have no sales tax?
What is economic nexus?
Do I charge sales tax based on my location or the buyer's location?
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