Calculate state and local sales taxes with reverse calculation capability
Sales tax is a consumption tax imposed on the sale of goods and services. It's collected by retailers at the point of sale and remitted to state and local governments.
Accurate sales tax calculation helps with budgeting, business compliance, expense tracking, and understanding the true cost of purchases. It's essential for both consumers and businesses.
Sales tax rates vary significantly by state (0% to 7.25%) with additional local taxes up to 5%. Some states exempt certain items like groceries, clothing, or prescriptions.
Tax rates change frequently and vary by jurisdiction. Special rules apply to online purchases, services, and specific product categories. Verify current rates for accuracy.
Businesses must collect, report, and remit sales tax accurately. This includes understanding nexus rules, exemptions, and compliance requirements across multiple jurisdictions.
Online sellers must navigate complex multi-state tax obligations following the 2018 Wayfair decision, collecting tax based on economic nexus thresholds in various states.
Five states have no sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon
Sales tax generates about 30% of state tax revenue nationwide, second only to income tax
Online sales tax collection became mandatory for large retailers after 2018 Supreme Court ruling
Five states have no statewide sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. However, Alaska allows local sales taxes, and other states may have specific excise taxes on certain items.
Yes, most online retailers now collect sales tax due to economic nexus laws. If they don't, you're technically required to pay use tax directly to your state, though enforcement varies.
This calculator provides estimates based on current tax laws and rates. Actual taxes may vary based on specific circumstances, deductions, credits, and local variations. For precise calculations, consult a tax professional.
Consult a tax professional for complex situations including self-employment, rental properties, significant investments, major life changes, tax debt, IRS audits, or when tax planning could provide substantial savings.
"Perfect for my small business! Helps me verify our POS system calculations and handle multi-state sales."
"Great for budgeting large purchases. The reverse calculation feature is especially helpful!"
"E-commerce seller here - this helps me understand tax obligations across different states. Essential tool!"