How this calculator works
Sales tax is the price × (state rate + local rate). In most states, cities, counties and special districts add their own rate on top of the state rate, so the total depends on exactly where the sale happens.
State rates are as of July 1, 2026. California has the highest state rate at 7.25%; Indiana, Mississippi, Rhode Island and Tennessee follow at 7%. Alaska, Delaware, Montana, New Hampshire and Oregon have no statewide sales tax, though Alaska allows local ones.
The local rate is pre-filled with the state’s population-weighted average, a useful starting point but not your exact rate. Louisiana’s average local rate (5.13%) is higher than its state rate.
To remove tax from a total, the calculator divides by (1 + rate) rather than subtracting the rate. Taking 8.25% off $108.25 gives the wrong answer; dividing by 1.0825 gives exactly $100.
Many states tax groceries, clothing or medicine at a lower rate or not at all, so a receipt with mixed items can show a different overall rate.
Worked example
A $100 purchase in Texas
- State rate 6.25%, average local rate 1.95%: 8.2% in total.
- Tax: $100 × 8.2% = $8.20, so the total is $108.20.
- Working backward: $108.20 ÷ 1.082 = $100.00 before tax.
Questions people ask
Which state has the highest sales tax?
California has the highest state rate, 7.25%. Including local taxes, Louisiana has the highest average combined rate at about 10.13%, followed by Tennessee, Washington, Arkansas and Alabama.
Which states have no sales tax?
Alaska, Delaware, Montana, New Hampshire and Oregon have no statewide sales tax. Some Alaskan towns and boroughs charge a local sales tax.
How do I calculate the price before tax?
Divide the total by 1 plus the tax rate as a decimal. At 7%, a $53.50 total is $53.50 ÷ 1.07 = $50.00 before tax.
Do I pay sales tax on online orders?
Usually yes. Since 2018 states can require online sellers to collect sales tax, and all states with a sales tax now do for sellers above certain sales thresholds.
Sources
Last reviewed October 2, 2026