Sales Tax Calculator

How to use this sales tax calculator

1. Pick Add tax to put sales tax on top of a price, or Remove tax to split a total that already includes tax.
2. Enter the price before tax, or the total including tax.
3. Choose your state to use its 2026 base rate. If your city or county adds its own tax, type it in Local rate.
4. Or switch to Custom rate and enter the combined rate from your state's rate lookup.
5. Read the total, the tax and the price before tax, then copy the ready-made line for your invoice.

The calculator rounds sales tax to the cent, the way it appears on an invoice. It works for any amount, from a $40 repair to a $40,000 project.

How to calculate sales tax

Sales tax is a percentage of the taxable price. Turn the rate into a decimal (6.25% becomes 0.0625), multiply, and add the result to the price.

Worked example. You invoice a Texas client $2,400 for taxable work. The Texas state rate is 6.25%.

• Sales tax: $2,400 × 0.0625 = $150.00
• Total: $2,400 + $150 = $2,550.00

Now say the job site also has a 2% local tax. The combined rate is 6.25% + 2% = 8.25%. Tax becomes $2,400 × 0.0825 = $198.00, and the total is $2,598.00. That is why the local rate field matters: here it adds $48 to one invoice.

How to calculate reverse sales tax

A reverse sales tax calculation starts from a total that already includes tax and finds the price before tax. You need it when a client agrees to an all-in price, or when you log a receipt and want to know how much of it was tax.

Worked example. A client pays $1,082.50 including 8.25% sales tax.

• Price before tax: $1,082.50 ÷ 1.0825 = $1,000.00
• Sales tax included: $1,082.50 − $1,000.00 = $82.50

State sales tax rates for 2026

These are the statewide base rates for 2026, from the Tax Foundation's midyear table (rates as of July 1, 2026), checked against state revenue sites in October 2026. The Tax Foundation reports no statewide rate changes between January and July 2026. The most recent base rate change was Louisiana's, which rose to 5% in January 2025.

Five states have no statewide sales tax: Alaska, Delaware, Montana, New Hampshire and Oregon. Alaska still lets local governments charge one. In most other states, local taxes add on top. Among states with a statewide tax, combined state and average local rates run from 4.5% in Hawaii to 10.13% in Louisiana, so the state rate alone is often too low.

Rates for California, Utah and Virginia include a local add-on that applies everywhere in the state. For the exact rate at a street address, use your state revenue department's rate lookup and enter it as a custom rate.

Sales tax on services: do you have to charge it?

It depends on the state and on the service. Most states built their sales tax around goods and tax only some services. A few tax services broadly. Here is how a handful of states describe it on their own sites:

• California: the CDTFA says sales tax does not apply to charges for services, unless the services are part of the sale of tangible personal property.
• Texas: the Comptroller lists 16 categories of taxable services, including data processing, information services, real property services, personal property repair and security services. Twenty percent of a data processing charge is exempt.
• Washington: since October 1, 2025, a new law (ESSB 5814) taxes advertising services, IT services, custom website development, custom software, live presentations, temporary staffing, and investigation and security services. New exclusions took effect July 1, 2026.
• South Dakota: the state's sales tax applies to retail sales of goods and to the sale of services, unless the law exempts them. Its guide uses haircuts, massages and repairs as examples of taxed services.
• New Mexico: gross receipts tax covers performing services in New Mexico.
• Hawaii: the general excise tax applies to all business activities. It's a tax on the business, which may choose to pass it on to customers.

The Tax Foundation notes that Hawaii, New Mexico and South Dakota have broad tax bases that include many business-to-business services. Rules change, too: Washington's list grew in 2025, and Texas removed internet access from its taxable services in July 2025.

How to show sales tax on an invoice

A clear invoice shows the client what is taxed and how much. List the work as line items, then show:

• a subtotal before tax;
• a sales tax line with the rate and, where it helps, the place (for example, Texas sales tax 6.25%);
• the total the client owes.

If a job mixes taxable and non-taxable items, put them on separate lines and apply tax only to the taxable ones. California's CDTFA, for example, treats separately stated service charges as non-taxable when the invoice splits taxable and non-taxable charges and your records back it up. See our guide to an itemized invoice for how to break a job into lines.

In Onigiri, line items are qty × rate, and you can add tax rates and discounts, so the subtotal, tax and total are worked out for you. Invoices go out by email, as a link or as a PDF. The free plan covers 3 invoices a month with no credit card. Need one invoice right now? The free invoice generator makes a PDF without sign-up.

Common sales tax mistakes

• Using only the state rate. Local taxes can add several points. Check the combined rate for where the sale happens.
• Removing tax the wrong way. Divide by 1 + rate; never subtract the rate from the total.
• Assuming services are never taxed. Some states tax many services, and lists change, as Washington's did in 2025.
• Forgetting to charge it. South Dakota's guide says the seller is liable for the sales tax due, whether or not it was collected. Leaving it off an invoice can mean paying it yourself.
• Taxing the whole invoice. If only part of a job is taxable, tax only those lines.
• Rounding each line differently. Tax worked out per line and on the subtotal can differ by a cent or two. Pick one method and use it every time, in line with your state's guidance.

Selling to clients in other countries? Use our VAT calculator for UK, EU, Australian, New Zealand and Canadian rates. To see what a card payment costs you after tax, try the Stripe fee calculator.

Frequently asked questions