How to apply sales tax
Choose whether the price is before or after tax.
1
Enter the amount
Use the price per unit before or after tax, depending on the mode.
2
Set the rate
Combine state and local rates where they apply to the same sale.
3
Pick the basis
Tax added on top differs from extracting tax from a gross price.
What does this tool do?
Sales tax is charged on the taxable value of a sale. Prices can be quoted before tax or inclusive of tax, and the two require different arithmetic, so this calculator supports both directions.
The Formula
Exclusive: Tax = Amount × Rate; Inclusive: Tax = Gross − Gross ÷ (1 + Rate)Frequently Asked Questions
How do I remove sales tax from a total?
Divide the tax-inclusive total by one plus the rate, for example by 1.0825 at 8.25%. The difference between the total and that net figure is the tax.
Why does multiplying the total by the tax rate overstate tax?
The total already includes tax, so its base is larger than the net price. Multiplying the gross amount by the rate applies tax to tax.