Sales Tax Calculator
Use your own numbers after reviewing the formula and worked example.
Quick answer
A basic sales-tax calculation multiplies taxable price by the tax rate, then adds tax to the price.
Formula or method
Keep units, percentages and time periods consistent. The formula is useful as a transparent check on the calculator result and helps explain why changing one input changes the answer.
Step-by-step
- Convert tax rate to decimal.
- Multiply taxable price by the rate.
- Add tax to the taxable price.
- Round currency appropriately.
Worked example
At 5.5% tax on $200, tax is $11 and the final total is $211.
How to interpret the result
Actual taxable amounts and rates vary by location and product; this page performs the arithmetic once the applicable rate is known.
When the answer is used for a purchase, loan, payroll decision, construction order, school grade, health estimate or other real-world choice, verify the assumptions that matter in that context. Accurate arithmetic still depends on accurate inputs.
Common mistakes
- Using 5.5 instead of 0.055.
- Applying tax to exempt items.
- Assuming one rate applies everywhere.
Frequently asked questions
How do I remove tax from a tax-included total?
Divide by 1 plus the tax rate as a decimal.
Does this find my local rate?
No.
Should discounts come before tax?
Rules can vary; use the applicable tax treatment.