Sales Tax Calculation
Sales tax is a percentage added to the price of an item. Sales tax rates vary across states and cities. To calculate sales tax on a purchase, first convert the tax rate to a decimal and then multiply the cost of the item by the decimal tax rate. Add this tax amount to the original price to get the total cost.
Sales Tax Rates
Sales tax rates in the U.S. range from 2.9% to 7.25% at the state level. Local taxes can add another 1% to 5%. To find a location’s total sales tax rate, add the state and any local rates.
Table: Sales Tax Rates for US States (2014)
To find the sales tax rate from a purchase receipt, subtract the base price from the total price to get the sales tax amount.
How to Calculate Sales Tax
The formula for calculating the sales tax on a good or service is: selling price x sales tax rate. When calculating the total cost of a purchase, the formula is: total sale amount = selling price + sales tax.
Sales tax in the US varies by state or city but is generally 4% to 8% of the retail price. It is typically imposed when you check out at stores, online retailers, and restaurants.
The statewide sales tax rate in California is 7.25 percent, with many areas adding district taxes for local projects and services.