Sales tax calculator

Our sales tax calculator can help you determine the the amount of sales tax that should be added to a purchase.

Page written by AI. Reviewed internally on May 20, 2024.


This calculator is intended for illustration purposes only and exact payment terms should be agreed with a lender before taking out a loan.

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What is sales tax?

Sales tax is a type of consumption tax imposed by governments on the sale of goods and services. It’s typically a percentage of the purchase price and is collected by the seller at the point of sale. The seller then remits the collected tax to the government.

The purpose of sales tax is to generate revenue for government agencies. This revenue is used to fund public services such as education, healthcare, infrastructure, and various other government functions.

It’s important to note that sales tax rates and regulations can vary widely between different regions, states, and countries. In some places, sales tax may be a single, uniform rate applied to most goods and services. In others, there may be different rates for different types of items or exemptions for certain goods like groceries or medical supplies.

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