Sales Tax Calculator

Sales tax is calculated on the net selling price of taxable retail goods, products, and services at the point of sale. In most jurisdictions, sales tax is calculated after store promotional discounts or coupons are subtracted from the list price, but before adding shipping or delivery fees.

The core sales tax formula is: Tax Amount = Pre-Tax Price × (Sales Tax Rate ÷ 100). The grand total price is calculated as: Total Price = Pre-Tax Price + Tax Amount (or Pre-Tax Price × [1 + Tax Rate / 100]).

To calculate 18% GST on a pre-tax amount, multiply the net price by 0.18 (GST Amount = Price × 0.18). The final inclusive price is Price × 1.18. If extracting 18% GST from a tax-inclusive total, use the reverse formula: Pre-GST Price = Inclusive Total ÷ 1.18, and GST Amount = Inclusive Total - Pre-GST Price.

In countries that have adopted a Goods and Services Tax (such as India, Australia, Canada, and New Zealand), traditional state and local sales taxes were subsumed under GST. In contrast, the United States does not have a federal GST and continues to use individual state, county, and city sales taxes.

Sales tax is a single-stage consumption tax levied only at the final point of retail sale to the consumer. GST (Goods and Services Tax) is a multi-stage value-added tax levied at each step of the supply chain, allowing businesses to claim Input Tax Credits (ITC) on taxes paid for business inputs.

The easiest way to calculate sales tax is by using the free CalculatorsDaily Sales Tax Calculator. Simply enter the item's pre-tax price and select or type your local sales tax rate (such as 6.625% for New Jersey or 8.875% for NYC) to get instant results for total tax owed and final price.