Sales Tax Calculator

How Does Sales Tax Work?

There is a state sales tax on goods and services in the United States and the District of Columbia, except for Alaska, Delaware, Montana, New Hampshire and Oregon, which imposes a state sales tax when you buy items or pay for services. As many other states do, Alaska also allows localities to charge local sales taxes.

It is common for restaurants and hotels to charge a higher sales tax rate than the state sales tax rate, especially in the hospitality industry. For example, Massachusetts does not charge sales tax on regular grocery items. Also, many states charge additional taxes surcharges. For information on sales tax rates and potential tax surcharges, contact your state and locality.

Sales Tax Calculation

Divide the tax rate by 100 to get the tax rate as a decimal. Then multiply this number by the price of your item or service.

1. Calculate the list price and tax percentage
2. To get the tax rate as a decimal, divide the tax percentage by 100
3. Calculate tax by multiplying list price by decimal tax rate
4. To get the total price, add the tax amount to the list price

The following is an overview of the sales tax rates for different states.