Quick answer: Sales tax adds a percentage to the pre-tax price: total equals price times one plus the rate over 100. To recover the pre-tax price, divide the total by one plus the rate over 100. Rates vary by country and product; Pakistan's standard GST rate is 18 percent, but always verify the current rate for your item.
Last reviewed: September 2026
Calculate tax
Key facts
- Sales tax = price × tax rate — added at checkout, not on the shelf label.
- A $100 item at 8.5% costs $108.50 — the tax alone is $8.50.
- US state rates run from 0% to about 7.25%, before local city/county add-ons.
- Some places tax groceries and clothing differently — or not at all.
Sales tax is the percentage added to a purchase price at checkout. This free sales tax calculator shows the tax amount and the final total instantly — so the price on the shelf never surprises you at the till.
Enter the price and your local tax rate. Both the tax and the all-in total appear at once.
How to use
- Enter the price before tax.
- Enter your sales tax rate as a percentage.
- The tax amount and total appear instantly.
Sales tax formula
| Term | Meaning |
|---|---|
| price | The shelf price before tax. |
| rate | Tax rate as a decimal (8.5% = 0.085). |
| total | What you actually pay. |
Example: $100 at 8.5% → tax = $8.50, total = $108.50. Reverse: $108.50 ÷ 1.085 = $100.00.
Worked examples
Electronics purchase
$100 item at 8.5%: tax = 100 × 0.085 = $8.50; total = $108.50.
Clothing purchase
$49.99 item at 6.25%: tax = 49.99 × 0.0625 = $3.12; total = $53.11 (rounded to the cent).
Typical US state sales tax rates
| State | Base rate | Notes |
|---|---|---|
| California | 7.25% | Highest statewide base rate. |
| Texas | 6.25% | Local add-ons can push totals above 8%. |
| New York | 4.00% | Counties add their own tax on top. |
| Florida | 6.00% | Counties may add up to 2.5% more. |
| Delaware | 0% | No statewide sales tax at all. |
| Oregon | 0% | No statewide sales tax at all. |
Rates change and local taxes stack on top — always confirm your combined local rate before a big purchase.
Frequently asked questions
Is sales tax included in the shelf price?
In the US, no — it is added at checkout. In the UK and EU, VAT is usually already included in the displayed price.
Why does tax differ between cities?
States set a base rate, then counties and cities can add their own. Two shops a few miles apart can charge different totals.
Are groceries taxed?
It depends on the state. Many states exempt or reduce tax on groceries; a few tax them fully. Prepared/restaurant food is taxed almost everywhere.
What about online shopping?
Most US states now require online sellers to collect sales tax based on the buyer’s delivery address.
How do I remove tax from a total?
Divide by (1 + rate): $108.50 ÷ 1.085 = $100.00 pre-tax.
Sources
Key takeaways
- Tax = price × rate; total = price × (1 + rate).
- US rates vary by state and locality — 0% to over 10% combined is possible.
- To strip tax from a total, divide by (1 + rate), don’t subtract the percentage.
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