Sales Tax Calculator 2026 – State Rates & Formula

Calculate sales tax instantly. Find 2026 sales tax rates by state, learn the formula, and calculate total cost with tax included.

Published on 12/10/2024

Sales Tax Calculator 2026 – 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:

  1. Convert tax rate to decimal (e.g., 7% = 0.07).
  2. Multiply price by decimal to find tax amount.
  3. 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 = ****

2026 Average Sales Tax Rates (State + Local)

States vary wildly. Here are the averages (combined state & local):

State RiskAvg RateHighestLowest
HighTN, LA, AR, WA, AL~9.5%
MediumNY, CA, IL, TX~8.5%
LowHI, WI, ME~5.5%
ZeroOR, 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.


Key Takeaways

  • Build a comprehensive financial plan covering savings, debt, and investment
  • Review your financial goals quarterly and adjust strategies as needed
  • Use calculators to model different scenarios before making major financial decisions

How to Use This Calculator

  1. Enter your financial details in the fields above
  2. Adjust parameters to match your specific situation
  3. Review the calculated results and projections
  4. Compare different scenarios to find the optimal strategy

Tips for Better Results

  • Use realistic estimates based on current market conditions
  • Update your calculations regularly as your situation changes
  • Consider consulting a financial advisor for complex decisions
  • Remember that calculator results are estimates, not guarantees
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