Online Receipt Generator
Tax & Discounts

Sales Tax Calculator

Add US-style sales tax (state + local) to a price, or pull it out of a tax-inclusive amount.

Result

Combined rate

8%

Net amount

$100.00

State tax

$6.00

Local tax

$2.00

Total tax

$8.00

Gross amount

$108.00

Embed this calculator on your site

Copy this code and paste it into your page's HTML. The calculator is free to use and resizes itself to fit.

How it's calculated

State and local rates are added into one combined rate. Adding: tax = amount × combined rate. Removing: net = amount ÷ (1 + combined rate), and tax is the difference.

This sales tax calculator adds state and local tax to a net price. It can also work backward from a tax-inclusive total and show how much tax it contains. You see the combined rate, each tax amount and the final figure.

The formula

combined rate = state rate + local rate
Add tax:      tax   = amount x combined rate
              total = amount + tax
Remove tax:   net   = amount / (1 + combined rate)
              tax   = net x combined rate

The state tax and local tax are each calculated on the net amount. They are not stacked on each other.

Worked example

You sell an item for $250. The state rate is 6% and the local rate is 2%.

  • Combined rate: 8%
  • State tax: $15.00
  • Local tax: $5.00
  • Total tax: $20.00
  • Total: $270.00

Now reverse it. Choose "Amount already includes tax" and enter $108 at the same 8%. The net amount is $100.00 and the tax is $8.00.

How to read the result

The "Total tax" line is the amount you collect for the tax authority. It is not your income.

Use the tax-inclusive mode when a receipt shows only a gross price. Divide by 1.08, not by 0.92. Subtracting 8% from $108 gives $99.36, which is wrong.

Tax rules vary by country, state and product type. Some items are exempt, and some areas use special rates. Confirm the correct rates with your tax authority or an accountant. The default rates here are examples.

Show the tax as its own line on the document. Customers and auditors can then check it.

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Frequently asked questions

How do I calculate sales tax on a price?
Multiply the price by the combined tax rate. A $250 item at 8 percent combined tax has $20 of tax, so the total is $270.
How do I take sales tax out of a total?
Divide the total by one plus the combined rate. A $108 total at 8 percent gives a net price of $100 and $8 of tax. Do not multiply by one minus the rate.
Are state and local rates added together?
In this calculator, yes. Both rates apply to the same net price and are added side by side. Some places tax differently, so check how your area applies local tax.
Do I charge sales tax on shipping?
It depends on your location and on what you ship. Rules differ by state and country. Ask your tax authority or accountant before you add tax to shipping.
Which rate should I enter?
Use the rate for the place where the tax applies, as set by your tax authority. The defaults in the calculator are examples only, not official rates.