Sales Tax Calculator
Example: Sale amount (pre-tax): 500 $ · State sales tax rate: 6.25 % · Local (city/county) rate: 2 %
| Sales tax | $41 |
| Total customer pays | $541 |
| Combined tax rate | 8.25% |
Worked example
On a $500 sale in a place with a 6.25% state rate and a 2% local rate, the combined rate is 8.25%. The tax is $500 x 0.0825 = $41.25, so the customer pays $541.25 in total. Because local rates vary within a single state, always confirm the rate for the exact delivery or point-of-sale location rather than assuming the statewide rate.
Frequently asked questions
Why add a local rate?
Most states let cities, counties, and special districts levy their own sales tax on top of the state rate. The combined rate can differ street by street, so the destination usually determines the correct rate.
Do I have to collect sales tax in every state?
Only where you have nexus, a sufficient physical or economic presence. Economic nexus thresholds mean online sellers may owe tax in states they ship to once they cross a sales or transaction limit there.
Is shipping taxable?
The rule varies by state. Some tax shipping charges, others do not, and some tax it only when the goods are taxable. Check your state's rule, since this calculator taxes only the sale amount you enter.
What items are exempt?
Many states exempt categories like groceries, prescription drugs, or clothing, and sales to resellers or nonprofits can be exempt with the right certificate. Apply the tax only to taxable items.