How state, use, and local sales taxes work
Sales tax in the United States is collected at the state and local level, not by the federal government. A purchase price may be subject to a state sales tax rate, a local city or county rate, and in some cases a use tax when taxable goods are bought out of state. This calculator adds each rate to the pre-tax price independently.
For state-specific calculators, try the Ohio sales tax calculator or the New Jersey sales tax calculator. For general sales tax math, use the sales tax calculator. To calculate tax-inclusive pricing margins, see the margin and sales tax calculator.
Sales tax formula
Where is the pre-tax price, is the state tax rate, is the use tax rate, and is the local tax rate. Total price equals pre-tax price plus total tax.
Worked example
A $100 purchase with a 6.25% state tax, 0% use tax, and 2% local tax generates $6.25 in state tax and $2.00 in local tax. Total tax is $8.25 and the total price is $108.25. Combined tax rate is 8.25%.
When to use each tax type
- State sales tax: standard tax on in-state retail purchases where the seller collects tax at the point of sale.
- Use tax: owed by the buyer when sales tax was not collected, such as on out-of-state purchases used in the home state.
- Local tax: additional city, county, or district tax layered on top of the state rate.
Frequently asked questions
Are state and local sales taxes added together?
What is use tax?
Does this calculator include all exemptions?
Which states have no sales tax?
Can I share my tax calculation?
Resources and references
The formulas and methods in this calculator were checked against these independent sources.