How to Use Our Sales Tax Calculator
Our calculator gives you a precise result with just two simple inputs.
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Pre-Tax Price ($): Enter the sticker price or subtotal of the item or service you are buying, before any taxes are applied.
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Location (ZIP Code): Enter the 5-digit ZIP code of the store or shipping destination. This is the most important step, as our tool uses the ZIP code to find the exact combined sales tax rate for that specific location. You can also enter a tax rate manually if you already know it.
Understanding Your Results
The calculator will provide a clear breakdown of your total cost. Here’s what each number means.
The calculation is straightforward:
Final Cost=Pre-Tax Price×(1+Combined Tax Rate)
For the example above: Final Cost = $299.00 * (1 + 0.0875) = $325.16
Frequently Asked Questions
Why is the sales tax different in a neighboring city?
Sales tax is a combination of multiple layers of taxes. While a state may have a set rate, counties, cities, and even special districts (for things like public transit or stadiums) can add their own separate taxes on top. This is why two cities in the same state can have different total tax rates. Our calculator accounts for all of these layers to give you the precise rate for a specific ZIP code.
Do I have to pay sales tax on online purchases?
Yes, in most cases. A 2018 Supreme Court ruling (South Dakota v. Wayfair) allows states to require online retailers to collect sales tax from customers, even if the retailer has no physical presence in that state. Now, nearly all major online stores automatically calculate and collect sales tax based on your shipping address and send it to the appropriate state and local governments.
Which states have the highest and lowest sales tax?
Sales tax rates are constantly changing, but here’s a general overview as of 2025.
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Five States with No Statewide Sales Tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. (Note: Alaska allows localities to charge their own sales taxes).
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Five States with the Highest Combined State & Local Rates: Tennessee, Louisiana, Arkansas, Washington, and Alabama often have the highest average combined rates in the nation when local taxes are included.
What are sales tax holidays?
A sales tax holiday is a short period, typically a weekend, when a state allows consumers to purchase specific items without paying sales tax. These are most common in late summer for back-to-school supplies, clothing, and computers. As of July 2025, many states like Texas, Florida, and Ohio have announced back-to-school tax holidays. Be sure to check your state’s department of revenue website for specific dates and qualifying items.
Are all goods and services taxed?
No. Most states exempt certain necessities from sales tax to lessen the burden on consumers. Common tax-exempt categories include:
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Groceries for home consumption (though prepared foods are usually taxed)
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Prescription medications
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Most services (like a doctor’s visit or legal advice, though this varies)
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Some clothing and footwear (below a certain price threshold in some states)
These exemptions vary significantly by state, so what’s tax-free in one state might be taxable in another.
How can I calculate the original price if I only have the total receipt?
You can easily “reverse” the calculation if you know the total cost and the sales tax rate. This is useful for expense reports or budgeting.
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Formula: Pre-Tax Price=Total Cost÷(1+Sales Tax Rate)
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Example: Your total receipt is $107.50, and you know the tax rate was 7.5% (or 0.075).
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Calculation: Pre-Tax Price = $107.50 / (1 + 0.075) = $107.50 / 1.075 = $100.00
Can I deduct sales tax from my federal income tax?
The IRS allows you to deduct either your state and local income taxes or your state and local sales taxes on your federal return—but not both. You must choose one. For most people in states with an income tax, the income tax deduction is larger. However, if you live in a state with no income tax (like Texas or Florida) or if you made very large purchases during the year, deducting sales tax might be more beneficial. The total deduction for all state and local taxes (SALT) is capped at $10,000 per household. Consult a tax professional to determine the best strategy for your situation.
Put Your Tax Knowledge to Use
Understanding how taxes affect your purchases is a key part of smart financial management.
