How much is sales tax in my state?

Sales tax rates vary by state, ranging from 0% (Alaska, Delaware, Montana, New Hampshire, Oregon) to over 9% when combining state and local taxes. California, Tennessee, Louisiana, and Arkansas have some of the highest combined rates. Check your local government website for exact rates.

Is sales tax calculated before or after discounts?

Sales tax is calculated on the final price after discounts and coupons are applied. First subtract all discounts from the original price, then multiply by the sales tax rate. This means discounts also reduce the amount of tax you pay.

What items are exempt from sales tax?

Tax exemptions vary by state but commonly include groceries (unprepared food), prescription medications, and certain clothing items. Some states have tax-free weekends for specific items like school supplies or emergency preparedness goods. Always check your state's specific exemptions.

Do I pay sales tax when shopping online?

Yes, most online purchases now require sales tax based on your shipping address, following the 2018 Supreme Court decision in South Dakota v. Wayfair. Large online retailers collect sales tax for all states. Small sellers may only collect tax in states where they have a physical presence.

How do I calculate reverse sales tax?

To find the pre-tax price when you only know the final price, divide the final price by (1 + tax rate). For example, if the final price is $108 with 8% tax: $108 ÷ 1.08 = $100 original price. The tax amount is then $8.