How the final price is worked out
Discounts come off first, one after the other, and each is rounded to the cent. Then sales tax is worked out on what is left and rounded to the cent, the way a register rounds it.
Price after a % discount = price × (1 − discount ÷ 100)
Sales tax = price after discounts × tax rate ÷ 100
Total = price after discounts + sales tax
Price before tax = total ÷ (1 + tax rate ÷ 100)
Worked example: $80 at 25% off, then an extra 10% off, with 8.25% tax
25% of $80 is $20, so the sale price is $60. The extra 10% comes off $60, which is $6, leaving $54. That is $26 off, or 32.5% in total, not 35%. Sales tax at 8.25% on $54 is $4.455, which rounds to $4.46, so you pay $58.46.
Going the other way, a $54.13 total at 8.25% tax was 54.13 ÷ 1.0825 = $50.00 before tax, with $4.13 of tax.
2026 statewide sales tax rates
These are the statewide base rates on July 1, 2026, from the Tax Foundation’s State and Local Sales Tax Rates, Midyear 2026, which found no change to any statewide rate between January and July 2026. The Tax Foundation rounds to two decimals. The rates for Minnesota (6.875%), New Jersey (6.625%), Missouri (4.225%) and New Mexico (4.875%) are shown in full, as the state revenue departments publish them.
Local rates add to these. Most states let cities, counties and districts charge their own sales tax, so the rate at the register is usually higher than the state rate. The California, Utah and Virginia rates include a local add-on charged everywhere in the state, as the Tax Foundation counts them. New Mexico’s tax is a gross receipts tax, and Hawaii’s is a general excise tax, which businesses may pass on to buyers.
| State | State rate |
|---|---|
| Alabama | 4% |
| Alaska | None |
| Arizona | 5.6% |
| Arkansas | 6.5% |
| California | 7.25% |
| Colorado | 2.9% |
| Connecticut | 6.35% |
| Delaware | None |
| District of Columbia | 6% |
| Florida | 6% |
| Georgia | 4% |
| Hawaii | 4% |
| Idaho | 6% |
| Illinois | 6.25% |
| Indiana | 7% |
| Iowa | 6% |
| Kansas | 6.5% |
| Kentucky | 6% |
| Louisiana | 5% |
| Maine | 5.5% |
| Maryland | 6% |
| Massachusetts | 6.25% |
| Michigan | 6% |
| Minnesota | 6.875% |
| Mississippi | 7% |
| Missouri | 4.225% |
| Montana | None |
| Nebraska | 5.5% |
| Nevada | 6.85% |
| New Hampshire | None |
| New Jersey | 6.625% |
| New Mexico | 4.875% |
| New York | 4% |
| North Carolina | 4.75% |
| North Dakota | 5% |
| Ohio | 5.75% |
| Oklahoma | 4.5% |
| Oregon | None |
| Pennsylvania | 6% |
| Rhode Island | 7% |
| South Carolina | 6% |
| South Dakota | 4.2% |
| Tennessee | 7% |
| Texas | 6.25% |
| Utah | 6.1% |
| Vermont | 6% |
| Virginia | 5.3% |
| Washington | 6.5% |
| West Virginia | 6% |
| Wisconsin | 5% |
| Wyoming | 4% |
Many states tax groceries, clothing or medicine at a lower rate or not at all. The calculator uses the one rate you enter, so for a mixed receipt, work out each part on its own.
Questions people ask
How do I work out sales tax?
Multiply the price by the tax rate as a decimal. At 8.25%, a $40 item has 40 × 0.0825 = $3.30 of tax, so you pay $43.30. Or multiply by 1 plus the rate in one step: 40 × 1.0825 = $43.30.
Is 20% off and then 10% off the same as 30% off?
No. The second discount comes off the price that is already reduced. On $100, 20% off leaves $80, and 10% off $80 is $8, so you pay $72. That is 28% off in total, not 30%. Two percent discounts always add up to a little less than their sum.
Is sales tax charged before or after a discount?
A store discount usually lowers the price that is taxed, so tax is worked out on the reduced price. Many states, New York and Colorado among them, tax the full price when a manufacturer’s coupon is used, because the store is paid back for the coupon (New York’s Department of Taxation says so in its coupon guidance). A few, such as Texas, tax the price after the coupon. Tick “Tax the price before discounts” to see that case, and check your state’s rules if the difference matters.
How do I find the price before tax from a total?
Divide the total by 1 plus the tax rate as a decimal. A $54.13 receipt at 8.25% tax: 54.13 ÷ 1.0825 = $50.00 before tax, and $4.13 of tax. Use the “Total to price before tax” mode.
Why is my state’s rate lower than what I pay at the register?
The state list shows the statewide base rate only. Most states let cities, counties and special districts add their own sales tax on top. In California, for example, the statewide rate is 7.25%, and local taxes add more in many cities. Your receipt or your state revenue department’s rate lookup gives the full rate for an address.
Which states have no sales tax?
Alaska, Delaware, Montana, New Hampshire and Oregon have no statewide sales tax. Alaska lets its cities and boroughs charge a local sales tax, so you can still pay sales tax in some Alaska towns.