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Sales tax calculator

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This sales tax calculator computes and displays one of three values based on the other two inputs: (1) Before tax price (the price before tax is applied), (2) Sales tax percentage (the tax rate as a percentage) and (3) After tax price (the total price including tax).

The calculator automatically calculates the missing value when any two of the three inputs are provided.

Related calculators:

VAT calculator

What is sales tax?

Sales tax is a consumption-based tax levied on the sale of goods and services. It is typically collected by the seller at the point of sale, and the amount is added to the price of the product or service. Sales tax is paid by the consumer, but it is collected and remitted to the government by the retailer or business.

How is sales tax different from VAT?

Sales tax and value-added tax (VAT) are both types of indirect taxes, but they differ in how and when they are applied:

  • Sales tax:
    • Applied only at the point of sale: Sales tax is typically applied once, at the final sale to the consumer. It is calculated on the sale price of the item or service.
    • Paid by the consumer: The consumer is responsible for paying the sales tax to the retailer, who then remits it to the government.
  • VAT:
    • Applied at multiple stages of production and distribution: VAT is applied at each stage of production or distribution where value is added, not just at the point of final sale.Paid by businesses at each stage: Businesses collect VAT on their sales (output tax) and pay VAT on their purchases (input tax). The difference between the output tax and input tax is remitted to the government. Consumers ultimately bear the tax burden, but it is a multi-stage process.
    Key difference: While sales tax is applied once at the final point of sale, VAT is applied at each stage of the production and distribution chain.

What is GST (Goods and Services Tax)?

GST is a type of value-added tax that is applied to the sale of goods and services in many countries. It is designed to be a comprehensive tax system that applies uniformly to all goods and services, with certain exemptions or reduced rates for specific items or sectors. GST is typically structured in a way that businesses can claim credits for the tax paid on inputs (like VAT), making it a form of indirect taxation.

How is GST different from sales tax and VAT?

GST is often considered a type of VAT, but there are some distinctions depending on the country:

  • GST vs sales tax:
    • Sales tax is applied at the point of final sale to consumers, whereas GST is typically applied at each stage of the production and distribution chain.
    • GST tends to be broader in scope, applying to more categories of goods and services, while sales tax may only apply to certain goods or services in some jurisdictions.
  • GST vs VAT:
    • GST and VAT are often the same in many countries in terms of structure, as they both involve multi-stage taxation on value added at each stage of production. The terminology differs based on the country. For instance, Canada calls it GST, while other countries, such as the European Union, call it VAT.
    • GST may have certain features, such as exemptions or lower rates for specific sectors, which can vary by country.

Sales tax rates in the US and Canada

United States:

In the United States, sales tax is administered at the state and local levels, meaning the rates can vary widely from state to state and even within regions in a state. As of 2024, sales tax rates typically range from about 0% to 10% or higher. Some states impose local taxes, while others do not.

  • States with no state sales tax:
    • Delaware
    • Montana
    • New Hampshire
    • Oregon
    • Alaska (although local sales taxes may apply)
  • States with high sales tax:
    • California: 7.25% (base rate) + local taxes (up to 10.25% in some areas)
    • Tennessee: 7% (base rate), with local taxes reaching up to 9.75%
    • Alabama: 4% (base rate), with local taxes bringing the total up to 11%

Canada:

Canada uses a combination of GST, Provincial Sales Tax (PST), and the Harmonized Sales Tax (HST), depending on the province.

  • Federal GST:
    The federal government imposes a 5% GST on most goods and services across Canada.
  • Harmonized Sales Tax (HST):
    In some provinces, the federal GST is combined with the provincial sales tax to form a single tax, known as HST. The HST rate ranges from 13% to 15%, depending on the province.
  • Provinces with separate PST:
    In some provinces, the provincial sales tax (PST) is charged in addition to the federal GST, making the overall sales tax rate higher.
    • Examples of provincial rates:
      • Ontario: HST at 13% (5% federal + 8% provincial)
      • British Columbia: 5% GST + 7% PST = 12% total
      • Alberta: No PST, only 5% GST
      • Quebec: 5% GST + 9.975% QST (Quebec Sales Tax), total of 14.975%

Summary:

  • Sales tax: Paid only at the final point of sale, applied to a specific set of goods or services.
  • VAT: A value-added tax applied at each stage of production and distribution; businesses can claim credits for VAT paid on inputs.
  • GST: A type of VAT used in countries like Canada, often applied uniformly to goods and services, with exemptions for certain sectors.

In the U.S., sales tax rates vary widely by state and locality, with rates ranging from 0% to over 10%. In Canada, the federal GST is 5%, with some provinces charging additional provincial taxes, either separately (PST) or as part of a combined tax (HST).