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Tax and Discount Calculator

Use this free tax and discount calculator to find the final checkout price after applying discounts and sales tax. Choose whether tax is calculated on the discounted or original price for accurate results by state or country.

Enter Values

The item price before any discounts

Percentage discount (leave 0 if none)

Fixed dollar amount off (applied after percent discount)

Your state or local sales tax rate

Most US states tax the discounted price. Some tax the original.

Result

Enter values above and click Calculate to see your result.

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Formula

Final = Discounted Price x (1 + Tax Rate / 100)

Apply percentage and fixed discounts to get the discounted price. Then apply tax on either the discounted or original price (depending on your selection). The result is the final checkout amount you actually pay.

Worked Example

Original: $100, Discount: 10%, Tax: 8% on discounted price Step 1: Discounted price = $100 x (1 - 0.10) = $90 Step 2: Tax = $90 x 0.08 = $7.20 Step 3: Final price = $90 + $7.20 = $97.20 Step 4: Total savings = $100 + $8 (original tax) - $97.20 = $10.80 Result: You pay $97.20, saving $10.80 versus full price with tax.

How Tax and Discounts Interact at Checkout

When you buy a discounted item, the order in which tax and discounts are applied affects the final price. In most US states, sales tax is calculated on the discounted (actual) price. However, some jurisdictions and special cases (like manufacturer coupons vs store coupons) may calculate tax differently.
  • Most US states calculate sales tax on the discounted price (the amount you actually pay)
  • Some states and some coupon types (manufacturer coupons) may tax the original price
  • Percentage discounts reduce the taxable amount more than fixed-dollar discounts in high-tax areas
  • Tax rates vary widely: 0% in Oregon, Delaware, Montana, New Hampshire; up to 10%+ in Tennessee, Louisiana
  • Always check your receipt to verify the tax was calculated correctly

This calculator handles both tax methods so you can see the exact checkout price for your situation.

You can also calculate changes using our Sale Price Calculator, Final Price Calculator, Coupon Savings Calculator or Percentage Off Calculator.

Frequently Asked Questions

Is tax calculated before or after the discount?

In most US states, tax is calculated on the discounted price (what you actually pay). This calculator lets you choose either method. Select "Tax on discounted price" for the most common approach.

Can I apply both a percent and dollar discount?

Yes. The percent discount is applied first, then the fixed dollar amount is subtracted from the already-discounted price. Tax is then calculated on the final discounted amount.

Why does the tax method matter?

Taxing the original vs discounted price changes how much you pay. On a $100 item with 10% off and 8% tax: taxing discounted price = $97.20, taxing original price = $98.00. The $0.80 difference grows with higher prices and tax rates.

How do I find my local sales tax rate?

Search for "[your city/county] sales tax rate" or check your state revenue department website. Rates typically range from 0% to 10.25% depending on state and local taxes combined.

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