US Sales Tax Business Calculator
Add US sales tax at any state or local combined rate to a net price — or remove it from a gross amount. Covers all 50 states. Enter any rate between 0% and 12% for accurate invoice, quote, and procurement calculations.
Calculate US sales tax by state rate — instantly shows pre-tax amount, tax, and total for retail and e-commerce pricing.
Formula
Add tax: Total = Net × (1 + Rate/100) | Remove tax: Net = Total ÷ (1 + Rate/100)
US sales tax uses the same arithmetic as VAT and GST. Multiply the pre-tax price by (1 + rate/100) to get the tax-inclusive total. To extract the pre-tax amount from a tax-inclusive price, divide by (1 + rate/100). The tax amount is always the difference between the total and the net.
Worked Example
Scenario 1 — B2B software licence:
A vendor sells a USD 2,500 annual licence to a Los Angeles client. California state rate is 7.25%, but Los Angeles combined rate is 10.25%.
At CA state only: Tax = USD 2,500 × 7.25% = USD 181.25 → Total = USD 2,681.25
At LA combined: Tax = USD 2,500 × 10.25% = USD 256.25 → Total = USD 2,756.25
Scenario 2 — Removing tax from a receipt:
A Texas expense receipt shows USD 537.50 total. The state rate is 6.25%. What is the pre-tax amount?
Net = USD 537.50 ÷ 1.0625 = USD 506.00
Tax = USD 537.50 − USD 506.00 = USD 31.50
Always use the combined state-plus-local rate for the specific transaction location — state rates are minimums, not the rate your customers actually pay.
Common Mistakes
- Using the state rate when a combined rate applies. Most US jurisdictions layer local sales tax on top of the state rate. California's state rate is 7.25%, but the combined rate in Los Angeles reaches 10.25%. Always use the combined state-plus-local rate for the specific location of the transaction.
- Applying sales tax to exempt products. Every US state defines its own list of taxable and exempt goods and services. Groceries are exempt in many states; clothing is exempt in New York below a threshold; SaaS and digital products have inconsistent rules across states. Never assume a product is taxable without checking the destination state's rules.
- Ignoring economic nexus after South Dakota v. Wayfair (2018). Since the 2018 Supreme Court ruling, remote sellers may have sales tax nexus in states where they exceed a revenue or transaction threshold (commonly USD 100,000 or 200 transactions), even without a physical presence. Businesses selling across state lines should review their nexus obligations in each state.
Guide
How to Use
- 1
Choose Add or Remove
Select Add Sales Tax to calculate the tax-inclusive price, or Remove Sales Tax to extract the pre-tax net from a total.
- 2
Select a state or enter a custom rate
Choose one of the preset state rates, or select Custom Rate and enter the combined state-plus-local rate for your specific jurisdiction.
- 3
Enter the amount
Type the price in USD. The calculation works for any value.
- 4
Click Calculate
The result shows the net pre-tax amount, sales tax, and tax-inclusive total.
FAQ
Frequently Asked Questions
Next Steps
What to do next
Related by Workflow
Related in This Region
Key US state sales tax rates
| State | State rate | Note |
|---|---|---|
| California | 7.25% | + local up to ~10.75% |
| Texas | 6.25% | + local up to 8.25% |
| New York | 4% | + NYC/county up to ~8.875% |
| Florida | 6% | + local up to ~7.5% |
| Washington | 6.5% | + local up to ~10.4% |
| Montana / Oregon / Delaware | 0% | No statewide sales tax |
Rates are indicative. Always verify current state and local rates for the applicable jurisdiction before issuing invoices.
US sales tax formula
Tax amount = Net price × (Rate ÷ 100)
Gross (inc. tax) = Net + Tax amount
Net (ex. tax) = Gross ÷ (1 + Rate ÷ 100)
Save this in your team workflow
Bookmark this calculator and share it with your sales, finance, and procurement teams so you do not need to search again. Use the Copy result button to paste the tax breakdown directly into your invoice template, spreadsheet, or CRM.