Sales tax calculator ESTIMATE

Add a combined rate you supply, or back the tax out of a tax-inclusive total.

Important: Educational estimates only. Not tax, legal, or accounting advice. AI Accounting Desk is not a CPA firm and does not provide professional services. Verify figures with a licensed professional and official IRS sources (irs.gov) before making decisions. Sales tax rates and rules are set by states and localities. This page does not look them up.

Inputs

Pre-tax price, or the customer’s total if you are removing tax
Type the state plus local rate you already confirmed. 8.25 is only a sample.

Result ESTIMATE

Sales tax
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Total with tax
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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.

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