Sales tax calculator ESTIMATE
Add a combined rate you supply, or back the tax out of a tax-inclusive total.
Result ESTIMATE
Add, or pull the tax back out
Adding tax is amount × rate. On a $100 pre-tax sale at 8.25%, tax is $8.25 and the customer pays $108.25. Removing tax divides the total by 1 + rate. $108.25 ÷ 1.0825 = $100 of sales, and the $8.25 difference is the tax that was included. Use the second mode when a receipt shows one number and you need the revenue and the liability separately.
Tax = Pre-tax amount × Rate
Pre-tax amount = Total ÷ (1 + Rate)
The rate is an input, not a database
A combined rate can include a state tax, a city tax, and a special district. It can differ by product. This site will not invent a table of those rates. Confirm the rate with the state department of revenue before you charge it. The sales tax guide explains why the money is a liability, not income, and how it differs from federal income tax.
How it hits the books
Credit revenue for the pre-tax amount. Credit sales tax payable for the tax. Debit cash or accounts receivable for the total. When you remit the tax, you debit the liability, not an expense — unless you paid tax on something you bought, which is a different event. The chart of accounts starter includes a sales tax payable account. Do not leave collected tax inside the checking-account “profit” you use for runway.