How to Calculate VAT & Sales Tax — 2026 Guide
Unlike many countries, the US has no federal VAT. Sales tax is set at state/local level and varies significantly.
Adding Sales Tax
Total with tax = Amount × (1 + tax rate/100)
Example: $100 × 1.08 (8% tax) = $108
Removing Sales Tax from a Total
Pre-tax amount = Total ÷ (1 + tax rate/100)
Example: $108 ÷ 1.08 = $100
Common State Rates
- No tax: Oregon, Montana, New Hampshire, Delaware, Alaska
- Low (under 5%): Hawaii, Wisconsin, Wyoming, Maine
- High (over 9%): California, Tennessee, Arkansas, Louisiana
Related Calculators: