Sales Tax Calculator

What is the Sales Tax?

Currently, sales tax is charged in the majority of governments as an essential and typically effective approach for generating money for local and state governments. Sales tax takes his known history in ancient Mesopotamia and Egypt. In the U.S. it was introduced in the 18th century by George III, the English king, and among the other led to the American Revolution. On average, sales tax represents about 2% of Americans' personal income and provides nearly one-third of state government revenue. Some states, like Florida, Washington, Tennessee, and Texas, generate more than 50% of their tax revenue from sales tax. In Europe, it was nationally represented in Spain in the 14th century and later on in France, but nowadays it tends to be replaced with VAT tax.

Sales Tax in the U.S.

Unlike most countries that use Value-Added Tax (VAT), the U.S. uses retail sales tax. VAT applies at every production stage, while U.S. sales tax only applies at final purchase. This makes American sales tax simpler to understand but creates significant rate variations across states and localities. Many areas combine state and local sales taxes, creating unique rates by region. Our tool requires entering the sales tax rate to calculate prices before and after taxation. You can find out more information on the sales taxes by state in the U.S.