Shopping calculations
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 calculatorSales 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%:
- Convert 7.5% to 0.075.
- Tax = $85 × 0.075 = $6.375.
- Round according to the applicable rule: $6.38.
- 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.