How this number is made
Sales tax is a percent added at checkout. The rate on a statewide chart is rarely the rate on your receipt, because local governments add their own. Pick the state to load a starting rate, then replace it with the combined rate from the receipt or your local department of revenue.
- Enter the pre-tax price.
- Choose the state. The field fills with that state’s general statewide rate.
- Add local tax if you know it. A Georgia statewide 4% is not an Atlanta receipt.
Formula
Tax = price × rate. Total = price + tax. To back out tax from a total: price = total ÷ (1 + rate).
Worked example
Sixty-four dollars at 4% is $2.56 of tax and a $66.56 total. At a combined 8.9% the same item is $5.70 of tax and $69.70. The state preset will not guess the 8.9 for you.
Questions
Can I remove tax from a receipt total?
Divide the total by 1 plus the rate. A $108 total at 8% came from a $100 price, because 108 ÷ 1.08 = 100. This form runs the other direction.
Why do five states start at zero?
Delaware, Montana, New Hampshire, and Oregon do not levy a general statewide sales tax, and Alaska’s statewide rate is zero even though some localities charge one. Always check the city.