Sales Tax Calculator



Send Feedback

Is This Calculator Helpful?

     
   

How Sales Tax Calculator Works?


Our online Sales Tax calculator provides you with the easiest way to calculate sales tax in a few seconds. You are not required to pay a single penny for using this online sales tax calculator.




What is the difference between an excise tax and a sales tax?


Unlike a sales tax, an excise tax is a levy on specified items and services that are considered harmful. Sales taxes are always a proportion of the item's price, while excise taxes can be charged per unit.


Is there a sales tax for consumers who live outside of the state?


In the majority of circumstances, orders shipped from outside your state are exempt from estimate sales tax. The tax might be collected if the buyer travels from out of state to make the purchase. You should, however, check with your local law to see whether it differs from yours.


What is the sales tax on a vehicle?


Auto purchases are subject to the same 6% statewide sales tax. Additional sales taxes may also be imposed in some cities and regions of a state. As a last resort, look up everything you can about the situation in the location you live in.


Is a house subject to sales tax?


Purchase taxes are required, although they're not sales taxes. Instead, we're talking about the tax on real estate and other transferable assets. If you'd want additional information on these charges, we recommend consulting your local government.


Is the sales tax regressive?


It's true that sales taxes are regressive. As a proportion of the sale price, they are the same for everyone, regardless of income. This means that a bigger percentage of a poorer person's income is required to cover the cost.


Beginners Guide for Sales Tax


It is possible to solve a variety of issues related to the tax levied on the sale of products and services using our online sales tax calculator. Gross price can be calculated from net price and tax rate, or it can be reversed to operate as a reverse tax calculator. Because the rate and the tax base vary by state and region, the US sales tax system is somewhat convoluted. In order to gain a more comprehensive understanding of this subject, you can read on to learn more about what sales tax is, the differences between sales tax and value-added tax, its history, the methods used to calculate sales tax, and the effects it has on the economies of various US states.


What Is The Sales Tax?


Consumption taxes such as sales taxes are levied on goods and services purchased. Everything is subjected to it. Retailers collect and remit a specified proportion of estimated sales tax from customers, while the government receives the rest. It's a requirement for things like home goods, fresh produce, and luxuries like jewelry and designer clothes.
Types of taxation that are distinct or connected to one another include



Customers pay sales tax at the time of purchase, unlike a value-added tax, which is collected at every stage of the product's processing as a vat. In the case of a $2000 purchase, you'll be charged an additional 17 percent in sales tax, which is a fixed percentage of the total selling price of the products. You'll be required to fork over $2340 in total.
The retailer is not required to keep all of the sales tax collected. Sales tax is being collected from customers because the government promised to pay tax value for each item provided, they let them work in a particular area. They collect sales tax.
The state and the local sales tax rates in 2021 are shown on a graph below, which provides you with an overall idea of how advantageous tax systems are in each state.


Sales Tax Importance


The government makes use of sales tax funds for the advancement and expansion of the country's economy. Community members benefit from its utilization. Public parks, bridges, schools, and recreational areas are built with this money. These tax dollars are also used by the government to maintain existing public spaces. It's used to pay the salaries of a variety of government employees, including police and soldiers, as well as the folks who come to your door every day to collect garbage. As a result, it isn't a waste because the government is putting it to good use.


How to Calculate the Sales Tax


When using an online sales tax calculator, what is the best way to do so? To begin, familiarise yourself with how data is entered into the system. To make use of the sales tax calculator, follow these instructions.


You can enter your sales tax and net price in this field.


The sales tax is calculated based on two inputs provided by the user. The tax percentage and the net price are two examples of this. Assume a tax rate of 18%, resulting in a final cost of $1000. To see the results, simply click the calculate button after entering both of these inputs.


Observing the results that have been achieved.


To see the results, simply click "calculate" after you've input the tax % and net price. The following values are shown to you if these values are considered.
There is a total cost of $1,180,000.
The tax amount is 180 divided by two to arrive at 180.


Comparison of sales tax and VAT


Sales tax can be imposed at any point in the production or distribution process, from the beginning to the end. It can also be imposed at the manufacturing, wholesale, or multiple stages of production or distribution, but not all of them at once. In the United States and Canada, retail sales taxes, which are common in most states and some provinces, are single-stage taxes. To put it simply, this means that taxes aren't due until you actually sell the property. Instead of being taxed once at the end of a supply chain, VAT or GST is a multi-tiered, multi-stage tax that is levied at every step of the production or distribution process. Because previous chain partners deduct the VAT they paid when they purchased, the customer is ultimately responsible for all taxes. As a result, each member in the supply chain is taxed only on the "added value" they contribute to the final consumer.

The burden of taxation is borne by the final consumer in both cases, but the mechanisms for collecting, administering, and assessing the consequences on the economy differ greatly. The following table illustrates the differences between VAT and retail sales tax using a basic example. Consider a scenario in which a sawmill owner pays $100 for a barrel of wood that a lumberjack cut down for free. An oak stave from a sawmill is sold to a cooper for $150 by the sawmill owner. Once the barrel is finished, the cooper sells it to the store for $300, who in turn sells it to the buyer for $350. Value-added at each stage of the process adds up to $35, which is 10% of the overall value-added. When retail sales taxes are charged at the same 10% rate, customers pay the same amount; however, the tax is only levied at the point of sale.


Stage Product Price Value Added 10% VAT 10% Retail Sales Tax
1 Log $100 $100 $10
2 stave $150 $50 $5
3 barrel $300 $150 $15
4 barrel $350 $50 $5 $35
Total Tax $35 $35

Retail sales tax is simpler and less expensive to administer than VAT since it is applied to a smaller number of goods and services, resulting in a lower administrative burden on the government. But it could also mean that the tax burden on the final consumer would be more apparent. The wide range of sales tax regimes across U.S. states can harm the economy by distorting consumption and investment, as you will see below.


US Sales Tax


According to our previous discussion, the majority of states in the United States use a single-stage retail sales tax with a wide range of rates and exclusions. According to Schenk and Oldman, there are a number of economic consequences to the relatively high degree of tax code diversity in many states.



With the implementation of Streamlined Sales Tax in October 2005, an early step in the effort to harmonize the current sales tax system was taken, which has been ongoing. In a nutshell, states who join the agreement must meet a number of requirements aimed at improving unity and streamlining taxation across participants. The following are the most important requirements:



Currently, 24 states (representing about 31% of the population) have accepted the Agreement's simplification provisions, and more states are on the verge of doing so.


Effects on the economy


Additionally, a country's real Gross Domestic Product (GDP) could be adversely affected by a consumption-based tax, regardless of the specifics of the sales tax system in the United States.


It may skew saving decisions


Economists sometimes disagree on the implications of different tax loads, as is common in many economic topics. One of the most contentious issues is the debate over whether to impose an income tax or a consumption tax. Contrary to European countries, where consumption taxes account for the majority of government revenue, in the United States, income taxes have long played a prominent role at the federal level. There have been various proposals to alter the US tax structure toward a consumption-based approach, which advocates claim will encourage people to save more. As a result of income tax being deducted from your pay, you would have less money available for savings in the long run, according to this argument.


It rebalances the economy's income


According to the argument for saving behavior, tax regulations that encourage saving also have a greater impact on those with lower incomes. Due to the fact that most low-income families cannot save, they spend all of their money on necessities such as food, resulting in a smaller tax burden on wealthy individuals and a higher tax burden on the poor. As a result, jurisdictions with high sales taxes run the risk of expanding the gap between the wealthiest and the poor in society.


It can affect prices


There are many aspects that influence the impact of a sales tax, including how it's designed, how it's implemented, and how it's reacted to by both consumers and businesses. Consider a state's increase in the sales tax rate to better understand this. A rise in tax-exempt goods' prices is unavoidable in the short term, but the inflationary impact may be lessened if the seller does not pass on the entire cost to the final customer. In industries where rivalry is fierce, or where customer demand is particularly sensitive to price fluctuations, such a situation may arise.


Consolidated Rates for State and Local Sales Taxes


Because states have such a wide range of sales tax regimes, certain ones are more and less attractive to businesses. There are two primary explanations for this phenomenon:



US Sales Taxes In 2021


In order to illustrate the wide range of sales taxes in the United States, the following table provides further information about the sales taxes in each state. As a further benefit, you may check when and if food sales are free from sales tax in different states.


Stage Sales Tax Rate Avgerage Local Sales Tax Combined Sales Tax Max Local Sales Tax
Alabama 4.00% 5.22% 9.22% 7.50%
Alaska 0.00% 1.76% 1.76% 7.50%
Arizona 5.60% 2.80% 8.40% 5.60%
Arkansas 6.50% 3.01% 9.51% 5.13%
California 7.25% 1.43% 8.68% 2.50%
Colorado 2.90% 4.82% 7.72% 8.30%
Connecticut 6.35% 0.00% 6.35% 0.00%
Delaware 0.00% 0.00% 0.00% 0.00%
D.C. 6.00% 0.00% 6.00% 0.00%
Florida 6.00% 1.08% 7.08% 2.50%
Georgia 4.00% 3.32% 7.32% 4.90%
Hawaii 4.00% 0.44% 4.44% 0.50%
Idaho 6.00% 0.03% 6.03% 3.00%
Illinois 6.25% 2.57% 8.82% 9.75%
Indiana 7.00% 0.00% 7.00% 0.00%
Iowa 6.00% 0.94% 6.94% 1.00%
Kansas 6.50% 2.19% 8.69% 4.00%
Kentucky 6.00% 0.00% 6.00% 0.00%
Louisiana 4.45% 5.07% 9.52% 7.00%
Maine 5.50% 0.00% 5.50% 0.00%
Maryland 6.00% 0.00% 6.00% 0.00%
Massachusetts 6.25% 0.00% 6.25% 0.00%
Michigan 6.00% 0.00% 6.00% 0.00%
Minnesota 6.88% 0.59% 7.46% 2.00%
Mississippi 7.00% 0.07% 7.07% 1.00%
Missouri 4.23% 4.03% 8.25% 5.76%
Montana 0.00% 0.00% 0.00% 0.00%
Nebraska 5.50% 1.44% 6.94% 2.50%
Nevada 6.85% 1.38% 8.23% 1.53%
New Hampshire 0.00% 0.00% 0.00% 0.00%
New Jersey 6.63% -0.03% 6.60% 3.31%
New Mexico 5.13% 2.71% 7.83% 4.31%
New York 4.00% 4.52% 8.52% 4.88%
North Carolina 4.75% 2.23% 6.98% 2.75%
North Dakota 5.00% 1.96% 6.96% 3.50%
Ohio 5.75% 1.48% 7.23% 2.25%
Oklahoma 4.50% 4.45% 8.95% 7.00%
Oregon 0.00% 0.00% 0.00% 0.00%
Pennsylvania 6.00% 0.34% 6.34% 2.00%
Rhode Island 7.00% 0.00% 7.00% 0.00%
South Carolina 6.00% 1.46% 7.46% 3.00%
South Dakota 4.50% 1.90% 6.40% 4.50%
Tennessee 7.00% 2.55% 9.55% 2.75%
Texas 6.25% 1.94% 8.19% 2.00%
Utah 6.10% 1.09% 7.19% 2.95%
Vermont 6.00% 0.24% 6.24% 1.00%
Virginia 5.30% 0.43% 5.73% 0.70%
Washington 6.50% 2.73% 9.23% 4.00%
West Virginia 6.00% 0.50% 6.50% 1.00%
Wisconsin 5.00% 0.43% 5.43% 1.75%
Wyoming 4.00% 1.33% 5.33% 2.00%

Conclusion


Even those who aren't very strong at math can use our easy-to-to-understand online sales tax calculator. It's a win-win situation for everyone involved. We didn't want it to be very complicated, so even a non-technical person can figure out how much sales tax is worth. Despite the fact that calculating sales tax doesn't necessitate complex calculations, some people find it difficult to do so manually or in their heads. To figure out how much sales tax to add, they'll need a calculator. Calculators4you.com is the place to go for these people. If you need to figure out how much sales tax you owe on a certain purchase, keep our free sales tax calculator in mind.