Sales Tax Calculator
Add sales tax to a price or extract tax from a total amount. Includes all 50 US state base rates with optional local tax. Compare rates across states instantly.
Frequently Asked Questions
How do I calculate sales tax?+
Multiply the pre-tax price by the tax rate as a decimal. For example: $100 × 8.875% = $100 × 0.08875 = $8.88 tax. Total with tax: $108.88. To reverse it (extract tax from a total), divide the total by (1 + tax rate): $108.88 ÷ 1.08875 = $100 pre-tax.
Which US states have no sales tax?+
Five states have no state-level sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. However, Alaska allows local municipalities to charge sales tax, so some areas in Alaska do have local sales tax despite no state tax.
Do I need to charge sales tax on invoices?+
It depends on what you sell and where. Physical products are generally taxable. Services vary by state — some states tax all services, others only specific categories. Digital products have their own rules that vary by state. If you have nexus (physical or economic presence) in a state, you likely need to collect and remit sales tax on taxable items sold to customers in that state.
What is the difference between sales tax and use tax?+
Sales tax is collected by the seller at the point of sale. Use tax is owed by the buyer when sales tax wasn't collected — typically on out-of-state purchases. The rates are usually the same. Since the 2018 South Dakota v. Wayfair Supreme Court decision, most states require remote sellers to collect sales tax based on economic nexus thresholds.
Do freelancers need to charge sales tax?+
Most pure services (consulting, design, writing) are not subject to sales tax in most states. However, some states like Hawaii, New Mexico, and South Dakota tax services broadly. If you sell a mix of services and tangible products (e.g., a website with hosting), the taxability can be complex. Consult your state's tax authority or an accountant.
What is the highest sales tax rate in the US?+
The highest combined state + local rates are in cities like Chicago, IL (10.25%), Seattle, WA (10.25%), and parts of Louisiana (up to 11.45%). Tennessee has the highest average state + local combined rate nationally. The highest single state base rate is 7.25% (California).
Sales Tax for Freelancers and Small Businesses
Understanding when to charge sales tax is critical for compliance. The basic rule: if you sell taxable goods or services in a state where you have nexus, you must collect and remit sales tax. Review the IRS sales tax guidance for federal context. Post-Wayfair, economic nexus means even remote sellers may need to collect tax once they exceed a state's threshold (typically $100K in sales or 200 transactions per year).
Should Sales Tax Be on Your Invoice?
If you're required to collect sales tax, it should be a separate line item on your invoice — never bundled into the price without disclosure. Show the pre-tax amount, the tax rate, the tax amount, and the total. This protects you during audits and gives your client a clear record for their own tax deductions.
Track every invoice — including the tax you're collecting.
Uncollected invoices mean uncollected sales tax — and you may still owe it to the state. Track payment status and chase overdue invoices before they become a tax liability.
- ✓Visual Kanban board to track every invoice
- ✓See total outstanding AR at a glance
- ✓Automatic chase reminders for overdue payments
Also useful: Late fee calculator · Profit margin calculator · Invoice email templates · Freelance payment terms guide