Question 1

How do I calculate sales tax?

Accepted Answer

Multiply the pre-tax price by the tax rate (as a decimal). For example, a $50 item with 7% tax: 50 × 0.07 = $3.50 tax, for a total of $53.50. The reverse — finding the pre-tax price from a total — is the total divided by (1 + rate).

Question 2

What is the US state sales tax rate?

Accepted Answer

US state sales tax ranges from 0% (Alaska, Delaware, Montana, New Hampshire, Oregon) to 7.25% (California, with local add-ons up to ~10%). The list in this tool shows the 2026 combined state + average local rate for the most common states. Always check your specific zip code for the exact local rate.

Question 3

What is the difference between sales tax and VAT?

Accepted Answer

Sales tax is added at the register only on the final sale to a consumer (US model). VAT / GST is added at every stage of production and is included in the displayed shelf price (most of the world). The math is the same, but the consumer experience differs.

Question 4

Does this tool handle reverse calculation?

Accepted Answer

Yes. Switch to the Reverse tab, enter the total you paid and the tax rate, and the tool will show the pre-tax price and the tax amount.