Sales tax in the US is charged at the point of sale, added on top of the ticket price rather than included in it. Rates vary by state, county and city, so a $100 item can cost anywhere from $100 to over $110 at the register. Here is how to calculate sales tax correctly — with our free calculator.
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Typical 2026 sales tax rates
- 0 % — Delaware, Montana, New Hampshire, Oregon (no statewide sales tax)
- ~4 – 7 % — most state-level rates
- +1 – 4 % — county and city surtaxes on top
- ~8 – 10 % — typical combined rate in major metros (LA, Chicago, NYC)
Adding tax to a pre-tax price
Total = Price × (1 + tax rate)
Example: a $250 item with an 8 % combined rate: 250 × 1.08 = $270.00. Sales tax = $20.00.
Backing out tax from a receipt total
Pre-tax price = Total ÷ (1 + tax rate)
Example: your receipt reads $324.00 including 8 % tax: 324 ÷ 1.08 = $300.00, tax = $24.00.
Worked examples across common rates
| Pre-tax price | Rate | Tax | Total |
|---|---|---|---|
| $100.00 | 6 % | $6.00 | $106.00 |
| $100.00 | 7.25 % (CA base) | $7.25 | $107.25 |
| $100.00 | 8.875 % (NYC) | $8.88 | $108.88 |
| $100.00 | 10.25 % (Chicago) | $10.25 | $110.25 |
Nexus and online sellers
Since the 2018 Supreme Court decision South Dakota v. Wayfair, online sellers must collect sales tax in every state where they meet an economic nexus threshold (typically $100,000 in sales or 200 transactions per year). Marketplace facilitators like Amazon or Etsy generally handle this automatically.