Calculating the Final Price

When you shop, the price tag often shows the cost before tax. Sales tax is added at the point of sale, increasing the final amount you pay. This simple calculator helps you quickly determine the total cost of an item or service by adding the correct sales tax amount to the original price.

How to Use the Calculator

Using this tool is straightforward. You only need two pieces of information:

• Price Before Tax: The shelf price or listed cost of the item.
• Sales Tax Rate (%): The sales tax percentage applicable in your location.

The calculator will instantly show you the sales tax amount and the total price you will pay at the checkout.

What Is Sales Tax?

Sales tax is a consumption tax imposed by a government on the sale of goods and services. It is an indirect tax, meaning it is collected by the retailer from the consumer and then paid to the government. In the United States, sales tax rates vary widely as they can be set at the state, county, and city levels. This is why the total tax rate can be different in neighboring towns.

Sales Tax vs. VAT (Value-Added Tax)

Many other countries, particularly in Europe, use a Value-Added Tax (VAT) instead of a sales tax. While the end result for the consumer is similar, the collection process is different. Sales tax is only applied at the final sale to the consumer. VAT is collected at every stage of the production and distribution process. In most countries with a VAT, the advertised price already includes the tax, so the price you see is the price you pay.

Disclaimer: This calculator is for general informational purposes. Tax rates are subject to change and can be complex. For exact calculations, always refer to the official rates provided by local tax authorities.