US Sales Tax Calculator
More free tools: VAT calculator · Sales tax calculator · Late fee calculator
Rates vary by state, county and city — always verify the correct combined rate for the sale location. This tool is for estimation, not tax advice.
How US sales tax works
Unlike VAT, which is baked into prices in most of the world, US sales tax is added on top of the listed price at checkout — the number on the shelf is not the number you pay. There is no single national rate: each state sets its own base rate, and counties and cities can stack additional local taxes on top. That means the combined rate for a sale in one zip code can differ from the next town over, and a handful of states charge no statewide sales tax at all.
For freelancers and small businesses, the practical rule is straightforward: if you sell taxable goods or certain services to customers in a state where you have nexus — roughly, a meaningful business presence — you generally need to collect the correct combined rate for the buyer's location, show it as a separate line on the invoice, and remit it to the state. The formula itself is simple: tax = price × rate, total = price + tax. The hard part is knowing the right rate, which is why this calculator lets you type any percentage rather than guessing from a preset.
When you invoice with PayMrBill, add a tax line labeled "Sales Tax," enter the verified rate, and the generator does the math and shows the breakdown on the PDF. Keep records of every taxed sale — states can audit back several years. And because thresholds, nexus rules and taxable categories change, treat this calculator as a quick estimator and confirm the details with your state's department of revenue or an accountant.
Frequently asked questions
What sales tax rate should I enter?
The combined rate for the buyer's location: state + county + city. Many states publish lookup tools by address or zip code. Don't guess — charging the wrong rate can mean penalties later.
Do freelancers need to charge sales tax on services?
It depends on the state and the type of service. Many professional services are exempt in many states, but some states tax specific services like design or consulting. Check your state's rules for your exact situation.
What is "nexus"?
Nexus is the connection between your business and a state that obligates you to collect its sales tax — it can come from a physical presence, employees, or exceeding sales thresholds in that state. Economic nexus laws mean even remote sellers can owe collection duties.
Is sales tax the same as VAT?
Both are consumption taxes, but sales tax is charged once at the final sale while VAT is collected at each production stage. If you deal with international clients, our VAT calculator covers that side.