# Sales tax calculator

> Pick a state, add your local rate if you have one, and see the tax on a price or the pre-tax amount inside a total.

Canonical: https://www.invoqk.com/sales-tax-calculator

Uses state base rates only. Local taxes vary by address and are not included unless you enter them. Check your state revenue department before filing.

## How to calculate sales tax on an invoice or purchase

Sales tax calculations depend on whether you are adding tax to an agreed net cost or extracting pre-existing tax out of a gross receipt. Understanding forward and reverse formulas ensures complete compliance for US state revenue reporting and client billing.

### Sales tax formula (adding tax)

To determine the sales tax amount on a net price, multiply the price by the decimal rate, then add the tax to the base price to reach the grand total.

Sales Tax = Amount × (Rate / 100)
Total = Amount + Sales Tax

Worked example: a $1,000 service at 9.5% combined tax incurs $95.00 in sales tax, bringing the invoice total to $1,095.00.

### Reverse tax formula (extracting tax)

When given a tax-inclusive total price, extract the original pre-tax base by dividing by 1 plus the tax rate as a decimal.

Pre-Tax Amount = Total / (1 + (Rate / 100))
Tax = Total − Pre-Tax Amount

Worked example: a total bill of $1,095.00 at 9.5% tax has a pre-tax base of $1,000.00 and $95.00 in embedded tax.

### State vs. local sales tax

In most US states, the statutory state sales tax is only the foundation. Municipalities, counties, transit districts and school boards can levy add-on local taxes ranging from 0.5% up to 5% or more.

Total Tax Rate = State Base Rate + Local District Rate

Note: some cities like Chicago or Los Angeles have combined rates exceeding 10% when all overlapping jurisdictions are included.

### States with zero state sales tax

Five US states do not impose a statewide general sales tax. These are commonly remembered with the acronym NOMAD:

- Alaska (AK)*
- Delaware (DE)
- Montana (MT)
- New Hampshire (NH)
- Oregon (OR)

*Alaska exception: while Alaska has 0% state sales tax, local municipalities may assess municipal sales tax up to 7.5%.

## Common questions

### How do I calculate sales tax?

Multiply the pre-tax price by the combined tax rate and add the result to the price. At 8.25%, a 100 dollar item costs 108.25 dollars.

### How do I take sales tax out of a total?

Divide the total by 1 plus the rate. A total of 108.25 dollars at 8.25% is 108.25 ÷ 1.0825 = 100 dollars before tax.

### Why is my local rate not included?

Counties, cities and special districts set their own rates, and they depend on the exact address. Enter the combined local rate yourself to include it.

### Which states have no sales tax?

Alaska, Delaware, Montana, New Hampshire and Oregon have no state sales tax. Alaska allows local sales taxes in some areas.

### Do I have to charge sales tax on an invoice?

It depends on what you sell and where the buyer is. Many states tax goods, fewer tax services, and some require tax based on the buyer's location. Ask a tax professional if unsure.

### Where does sales tax go on an invoice?

Show it as its own line under the subtotal, with the rate, so the buyer sees the pre-tax price, the tax and the total.

## Related

- [Free invoice calculators](https://www.invoqk.com/calculators)
- [Invoqk home](https://www.invoqk.com)