Sales Tax Explained: State, Local and Final Price
Understand how state and local sales taxes affect a purchase, and how to work backwards from a tax-inclusive total.
How to estimate sales tax
Multiply the taxable before-tax price by the applicable combined rate divided by 100. Add the tax to the original price to estimate the final total.
Worked example
For a $100 taxable purchase at an assumed 8% combined rate, estimated sales tax is $8 and the total is $108. The 8% here is illustrative, not a rate for a particular location.
State and local rates are different
State tax is only part of the rate in some locations. County, city and special-district rules can alter the result. State selection alone does not establish the precise rate for a street address.
Reverse sales tax
To find a before-tax price from a tax-inclusive total, divide the total by (1 + combined tax rate / 100). For example, $108 / 1.08 = $100.
What the calculator does not know
Taxability depends on the goods or services purchased, exemptions, sourcing and the point of sale. Verify the actual local rate and item eligibility before relying on an estimate.
Try your own numbers
Use the interactive calculator to compare scenarios. The results are estimates based on your chosen inputs.
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Educational information only. Check applicable rules, rates and product terms; this guide is not individualized financial, tax, employment or legal advice.