How to use the Sales Tax and Net Price Calculator
The United States has no federal value-added tax. Instead, states, counties and cities levy their own sales tax, and the combined rate changes from one address to the next. The structure is also different from countries such as Korea, where tax is normally built into the shelf price (tax-inclusive) so a 11,000 won ticket already contains 1,000 won of tax. In the US, sales tax is usually added at the register on top of the listed price (tax-exclusive), so "backing the tax out of a total" only makes sense for receipts and tax-included contracts.
That is why this calculator asks what your amount represents. Choose net price and the tool adds tax on top and rounds it to the cent. Choose total paid and it divides by one plus the rate to recover the net price, then treats the remainder as tax so that net price plus tax always equals the total you entered. Multiplying a tax-included total by the rate would tax the tax again and overstate the amount.
Enter the combined rate that applies to the transaction, including state, county, city and any special district. Rates and the rules for which goods are taxable are set by each jurisdiction and change often, so confirm the current rate with your state department of revenue or your sales tax software before filing.
This page was written as of September 2026 and is for reference only. Nexus rules, product taxability, exemption certificates and marketplace facilitator rules vary by state; consult a tax professional for your specific filings.
Frequently Asked Questions
No. There is no federal VAT or national sales tax. Sales tax is charged at the state and local level, so the rate depends on the address of the sale and several jurisdictions can stack on top of each other.
Adding tax to a net price and backing tax out of a total are different operations. If $100 is a net price at 8.25%, the tax is $8.25. If $100 is a total that already includes tax, the net price is $92.38 and the tax is $7.62.
Use the combined rate for the destination of the sale: state rate plus county, city and any special district rate. Check the current figure with your state department of revenue, since local rates are updated throughout the year.