How to Calculate Sales Tax: Formula, Examples, and State Rates
By Jorge Sanchez · April 20, 2026 · 5 min read
Bottom line: Tax amount = Price × Rate. Total with tax = Price × (1 + Rate). A $200 item at 9% sales tax: $200 × 0.09 = $18 tax → $218 total.
The Sales Tax Formula
Tax Amount = Price × (Tax Rate ÷ 100)
Total Price = Price + Tax Amount
— or shortcut —
Total Price = Price × (1 + Tax Rate ÷ 100)
Examples
| Item Price | Tax Rate | Tax Amount | Total |
|---|---|---|---|
| $25.00 | 6% | $1.50 | $26.50 |
| $100.00 | 8.25% | $8.25 | $108.25 |
| $499.99 | 9.5% | $47.50 | $547.49 |
| $1,200.00 | 7.25% | $87.00 | $1,287.00 |
How to Reverse-Calculate: Find the Pre-Tax Price
If you have the total and want to know the pre-tax amount:
Pre-Tax Price = Total ÷ (1 + Tax Rate ÷ 100)
Example: You paid $108.25 total. Tax rate is 8.25%. Pre-tax price = $108.25 ÷ 1.0825 = $100.00.
State Sales Tax Rates (2026)
| State | State Rate |
|---|---|
| California | 7.25% (avg with local: ~8.82%) |
| Texas | 6.25% (avg with local: ~8.20%) |
| New York | 4.0% (avg with local: ~8.52%) |
| Florida | 6.0% (avg with local: ~7.08%) |
| Illinois | 6.25% (avg with local: ~8.83%) |
| Washington | 6.5% (avg with local: ~9.38%) |
| Tennessee | 7.0% (avg with local: ~9.55%) |
| Oregon, Montana, Delaware, NH | 0% — no sales tax |
Note: Final rate depends on state + county + city taxes combined. Always check locally for the exact combined rate.
What's Typically Exempt from Sales Tax?
- Groceries — most states exempt unprepared food
- Prescription drugs — exempt in virtually all states
- Clothing — exempt in several states (NY, PA, NJ, MN, TX)
- Digital goods — varies widely by state; increasingly taxable
- Resale items — businesses can buy tax-free if reselling
Sales Tax Calculator
Calculate tax amount and total price for any amount and rate — or reverse-calculate pre-tax price.
Calculate Sales Tax →Jorge Sanchez · Live Event Production Specialist · CalQpro