Sales Tax Calculator

LAST UPDATE: March 17th, 2020

Sales Tax Calculator (Add Sales Tax)

Sales Tax Calculator (Subtract Sales Tax)

What is Sales Tax?

A sales tax is a tax that is collected for each transaction.

The tax applies to all transactions at the retail level. Unlike a VAT (value-added tax) or GST (goods and services tax), businesses who purchase items with sales tax cannot reclaim the sales tax.

How to calculate sales tax (formula)

Sales tax is calculated by multiplying the sales tax rate by the total pre-tax cost. The cost of sales tax is then added to the purchase.

Example: $75 of goods x 5% sales tax = $3.75 sales tax

$75 of goods + $3.75 = $78.95 total

How to calculate reverse sales tax (formula)

To find the sales tax from a total, divide the total amount by the sales tax rate divided by 100 and plus 1.

Example: $70 total (with sales tax) at 5% tax rate

(5% / 100) + 1 = 0.05 + 1 = 1.05

$70 / 1.05 = $66.67 cost before sales tax