Sales Tax Calculator
Calculate sales tax amount or rate. Easily determine before-tax price, after-tax price, or sales tax rate with our comprehensive calculator.
Results
| Before Tax Price | $100.00 |
|---|---|
| Sales Tax Rate | 7.5% |
| Sales Tax Amount | $7.50 |
| After Tax Price | $107.50 |
About the Sales Tax Calculator
This sales tax calculator helps you determine the sales tax amount, before-tax price, after-tax price, or sales tax rate based on the values you provide.
How Sales Tax Calculation Works
Sales tax is calculated using simple mathematical formulas based on the type of calculation you need:
1. Calculating Sales Tax Amount
When you know the before-tax price and the sales tax rate:
Sales Tax Amount = Before Tax Price × (Sales Tax Rate / 100)
Example: $100 × (7.5 / 100) = $7.50
2. Calculating Before-Tax Price
When you know the after-tax price and the sales tax rate:
Before Tax Price = After Tax Price / (1 + (Sales Tax Rate / 100))
Example: $107.50 / (1 + (7.5 / 100)) = $100.00
3. Calculating After-Tax Price
When you know the before-tax price and the sales tax rate:
After Tax Price = Before Tax Price × (1 + (Sales Tax Rate / 100))
Example: $100 × (1 + (7.5 / 100)) = $107.50
4. Calculating Sales Tax Rate
When you know the before-tax price and the sales tax amount:
Sales Tax Rate = (Sales Tax Amount / Before Tax Price) × 100
Example: ($7.50 / $100) × 100 = 7.5%
Understanding Sales Tax
Sales tax is a consumption tax imposed by the government on the sale of goods and services. The tax is typically calculated as a percentage of the purchase price and collected by the seller at the point of sale.
Key Characteristics of Sales Tax:
- Regressive Tax: Sales tax takes a larger percentage of income from low-income earners than from high-income earners.
- Location-Based: Sales tax rates vary by state, county, and city, creating different tax rates across locations.
- Exemptions: Some items like groceries, prescription drugs, and clothing may be exempt from sales tax in certain jurisdictions.
Sales Tax vs. VAT
While sales tax and Value Added Tax (VAT) are both consumption taxes, they differ in several ways:
- Point of Collection: Sales tax is collected only at the final point of sale to consumers, while VAT is collected at each stage of production and distribution.
- Visibility: Sales tax is added at the point of sale, while VAT is typically included in the displayed price.
- Global Use: Sales tax is primarily used in the United States, while VAT is used in most other countries.