Tax Calculator

Understanding Sales Tax

Sales tax is a percentage-based tax levied on the purchase of goods and services. In the United States, sales tax is collected at the state and local level, with rates varying significantly by location.

The formula for calculating sales tax is: Tax = Purchase Price × Tax Rate. The total cost is: Total = Purchase Price + Tax. For example, a $200 purchase at 7% tax: $200 × 0.07 = $14 tax, total $214.

Sales tax rates can change, so it's always good to verify the current rate for your location before making large purchases.

How to Use This Calculator

1. Enter the purchase price before tax
2. Enter the sales tax rate as a percentage (e.g., 8.5 for 8.5%)
3. Click "Calculate Tax" to see the tax amount and total cost
4. Use this to budget for purchases or compare prices across different tax rates