Sales Tax Calculator Calculate sales tax, compare state rates, and estimate total costs — with 2025 U.S. benchmarks and n...
Sales Tax Calculator
Calculate sales tax, compare state rates, and estimate total costs — with 2025 U.S. benchmarks and nexus guidance.
Standard Formula**:
$$ \text{Tax} = \text{Price} \times \text{Rate} $$ $$ \text{Total} = \text{Price} \times (1 + \text{Rate}) $$
Reverse Formula** (from total):
$$ \text{Price} = \frac{\text{Total}}{1 + \text{Rate}} $$ $$ \text{Tax} = \text{Total} - \text{Price} $$
Example** ($100 in CA @ 8.8%): Tax = $100 × 0.088 = **$8.80** Total = $100 × 1.088 = **$108.80**
✅ Pro Tip**: Always check *combined* rate — e.g., Chicago = 10.25% (6.25% IL + 1.25% Cook County + 1.75% city + 1% transit).
⚠️ Avoid these common issues:
- “Tax-free” online scams** — Legally, if a seller has nexus, they *must* collect — no exceptions
- Out-of-state purchases** — You still owe *use tax* (filed with state income tax)
- Missing local taxes** — State rate ≠ total rate (e.g., LA: 4% state + 5.5% local = 9.5% total)
- Service tax confusion** — 24 states tax labor (e.g., CA taxes car repair labor)
✅ Pro Tips**:
- Use TaxRates.com or Avalara for ZIP+4 accuracy
- For business: Keep **exemption certificates** (e.g., reseller, nonprofit, manufacturing)
- File use tax annually if buying from non-collecting sellers (e.g., Etsy, eBay small sellers)
| State | State Rate | Avg. Local | Combined |
|---|---|---|---|
| Tennessee | 7.00% | 2.55% | 9.55% |
| Louisiana | 4.45% | 5.07% | 9.52% |
| Arkansas | 6.50% | 2.99% | 9.49% |
| California | 7.25% | 1.55% | 8.80% |
| Oregon | 0% | 0% | 0% |
📉 Taxable vs. Exempt** (varies by state):
- Usually taxable**: Electronics, furniture, vehicles, SaaS, digital goods
- Often exempt**: Groceries (CA, TX, FL), prescription drugs, clothing under $110 (NY)
- Split rules**: Restaurant meals (taxed in 45 states), clothing (exempt in MN, PA)
➡️ Standard Tax
“$999 laptop in Tennessee — what’s the checkout total?” ($1,094.30)
➡️ Reverse Tax
“Receipt says $108.80 total — how much was tax?” ($8.80)
➡️ Multi-State
Compare buying a $1,500 camera in TN (9.55%) vs. OR (0%) → **$143.25 savings**
➡️ Business
“$120K sales in CO — do I need to register?” (Yes: >$100K nexus threshold)
Note: Uses 2025 official state+local rates from Tax Foundation. Local rates are averages; use ZIP lookup for exact.