Sales Tax Calculator 2025 – State Rates & Formula
Calculate sales tax instantly. Find 2025 sales tax rates by state, learn the formula, and calculate total cost with tax included.
Sales Tax Calculator 2025 – State Rates & Formula
Introduction
Sticker price is rarely what you pay. Sales tax adds 0% to 10% depending on where you live. The Sales Tax Calculator helps you find the true total cost of any purchase.
Sales Tax Formula
Formula: Total Cost = Price + (Price × Tax Rate)
Step-by-Step:
- Convert tax rate to decimal (e.g., 7% = 0.07).
- Multiply price by decimal to find tax amount.
- Add tax amount to price.
Example: TV with 8% sales tax.
- Tax Amount: 200 × 0.08 =
- Total Cost: 200 + 16 = ****
Shortcut Method
Multiply Price by (1 + Tax Rate).
- × 1.08 = ****
2025 Average Sales Tax Rates (State + Local)
States vary wildly. Here are the averages (combined state & local):
| State Risk | Avg Rate | Highest | Lowest |
|---|---|---|---|
| High | TN, LA, AR, WA, AL | ~9.5% | |
| Medium | NY, CA, IL, TX | ~8.5% | |
| Low | HI, WI, ME | ~5.5% | |
| Zero | OR, DE, MT, NH, AK* | 0% |
*Alaska has no state tax but allows local tax.
Reverse Sales Tax Formula
Goal: Find original price from total.
Formula: Original Price = Total / (1 + Tax Rate)
Example: You paid total. Tax is 7%.
- 107 / 1.07 = ****
FAQ
Q: Is shipping taxable? A: Depends on the state. Some states tax shipping charges, others do not.
Q: Are groceries taxable? A: Most states exempt groceries (unprepared food) or tax them at a lower rate.
Q: What about online purchases? A: Since the Wayfair ruling (2018), most online retailers must collect sales tax based on your shipping address.
Conclusion
Sales tax is a significant hidden cost. Always factor in an extra ~5-10% when budgeting for large purchases like cars or electronics.