Add US sales tax to a price or back it out of a total, including the state-plus-local rate structure that actually applies at the till.
6% state + 2.25% local = 8.25% combined. 250 USD × 8.25% = 20.63 USD tax → 270.63 USD totalUS sales tax is layered: the state rate is only part of it, and county, city and special-district rates stack on top. The combined rate at the point of sale is what you must charge, not the headline state figure.
Rates differ by state, county and city, and many jurisdictions have changed. Confirm the exact combined rate for the ship-to address with your state’s revenue department before invoicing.
Unlike VAT, US sales tax is not a single national rate. It is set by state, then layered with county, city and special-district rates, producing a combined rate that can vary between two addresses a few miles apart. The number you charge is the combined rate at the point of sale.
That creates the practical problem this calculator solves: the tax must be applied to the pre-tax price to get the total, and separately, if you only know the total, the tax has to be backed out by division rather than by subtracting the rate percentage.
Nexus decides whether you charge at all. Since the South Dakota v. Wayfair decision, economic nexus thresholds mean a remote seller can owe tax in a state without any physical presence there — typically measured on sales volume or transaction count in that state.
Services are treated unevenly across states, and some goods — groceries, prescription medicine — are exempt or reduced. The rate here is a calculation aid, not a determination of taxability; that determination belongs to the specific state’s rules.
Multiply the pre-tax price by the combined rate, then add it. USD 250 at a combined 8.25% is 20.63 of tax, making the total 270.63. The combined rate is the state rate plus any county, city or district rates for the point of sale.
Divide by 1 + (combined rate ÷ 100). A 270.63 total at 8.25% divides to a pre-tax price of 250.00, with 20.63 of tax.
Possibly. Economic nexus rules mean exceeding a state’s sales or transaction threshold creates a collection obligation, even with no physical presence. Thresholds are set state by state and change periodically.
It depends on the state and the type of service. Some states tax most services, others tax very few, and treatment often differs by category. Check the destination state’s rules for your specific service.