Business Sales Tax Calculator
How To Use Our Sales Tax Calculator
We’ve made it really easy to calculate how much your business owes in sales tax.
First, select whether you want to use revenue numbers that are tax-inclusive or tax-exclusive.
Tax-exclusive is the price of your goods and services minus the cost of sales tax.
Tax-inclusive is the price of your goods and services, including the sales tax.
Then enter the sales tax rate for your state (look below for a quick overview of tax rates by state) and click “Calculate”.
We’ll provide you with your net profit (excluding tax), the amount of money owe in taxes, and gross revenue (which includes your profit and sales tax).
What is a Sales Tax?
A sales tax is a state government tax on the sale of goods or services. Typically, companies add sales tax to the cost of their products so that consumers end up footing the bill. Still, while consumers pay businesses for sales tax, it’s the job of the business to pass those funds onto the government. In most places, sales tax is referred to either as a value-added tax (VAT) or a goods and services tax (GST).
Most states do indeed have a sales tax, but Alaska, Delaware, Montana, New Hampshire, and Oregon do not.
Who Has to Pay Sales Tax?
Ultimately, the consumer is the one who pays for sales tax when they purchase an item. However, it’s the job of the business that sold the product to pass sales tax funds onto the government. That’s one reason why accurate financial documentation is so important for running a successful business.
Sales Tax in the U.S., by State
In the U.S., sales tax is created by the states. With the exception of Alaska, Delaware, Montana, New Hampshire, and Oregon, every state has a sales tax. This means that how much your business pays in sales tax (or the Tax Rate) will depend on where your business operates. Here’s a quick overview of the sales tax rates by state.
The Sales Tax Rate in State is as of July 1, 2020
