How to calculate sales tax

Multiply the taxable price by the tax rate as a decimal. Add the tax amount to the taxable price to get the tax-inclusive total.

Open the sales tax calculator

Sales tax = taxable price × (tax rate ÷ 100)

Total = taxable price + sales tax

Worked sales tax example

For a taxable purchase of $85 at a user-supplied rate of 7.5%:

  1. Convert 7.5% to 0.075.
  2. Tax = $85 × 0.075 = $6.375.
  3. Round according to the applicable rule: $6.38.
  4. Total = $85 + $6.38 = $91.38.

Actual receipts can differ by a cent depending on whether tax is rounded per line item or once on the subtotal.

Find the pre-tax price from a tax-inclusive total

Pre-tax price = total ÷ (1 + tax rate as a decimal)

If the total is $107 with a 7% included tax, pre-tax price = $107 ÷ 1.07 = $100, and included tax is $7. Subtracting 7% of $107 would be wrong because the rate applies to the smaller pre-tax base.

Discounts and combined rates

Whether a discount reduces the taxable base depends on the jurisdiction and type of discount. If it does, apply the discount first and calculate tax on the reduced price. Do not assume this treatment for every coupon or rebate.

Step$100 item, 20% discount, 8% tax
Discounted taxable price$100 × 0.80 = $80
Tax$80 × 0.08 = $6.40
Total$86.40

If several tax rates apply to the same base, they can often be added before multiplying. Some taxes compound on top of others, so local rules still matter.

Use the correct rate

Sales tax rates and taxable items vary by location and transaction. ToolPixels does not look up a jurisdiction or decide whether an item is taxable. Obtain the applicable rate from an authoritative local source.

Calculate from your own rate

The free Sales Tax Calculator returns the tax amount and total from the price and rate you enter. It is a general arithmetic tool, not tax advice.

Calculate sales tax