Enter the original item price, discount percentage, and local sales tax rate to compute your total savings, discounted subtotal, sales tax amount, and final checkout price.
How to use this calculator
Enter the tag price or sticker price of the item.
Enter the store discount percentage (e.g. 20% off sale).
Enter your state or local sales tax rate percentage.
Read your net savings, pre-tax discounted subtotal, sales tax total, and final checkout amount.
Formula & method
Retail Discount & Sales Tax Formula
Discounted Subtotal = Original Price × (1 − Discount%) · Sales Tax = Discounted Subtotal × Tax% · Final Total = Discounted Subtotal + Sales Tax
Original Price ≥ $0, Discount% between 0–100%, Tax% between 0–50%.
Example
Original $100.00, 20% discount, 8.25% tax → Subtotal: $80.00, Tax: $6.60, Final Total: $86.60 (Saved: $20.00).
Key insights
In most retail jurisdictions, sales tax is applied to the discounted subtotal price, not the original sticker price.
A 20% discount on a $100 item saves $20.00; adding 8.25% sales tax ($6.60) yields a final checkout total of $86.60.
Combining multiple percentage discounts sequentially (e.g. 20% off plus 10% coupon) yields 28% total discount, not 30%.
State sales tax rates in the US range from 0% (e.g. Oregon, Delaware) up to 9.5%+ (e.g. Tennessee, Louisiana combined rates).
How to interpret your result
Pre-Tax Discount Subtotal
The net purchase price after deducting store discounts, serving as the base for tax calculation.
Total Sales Tax
The exact monetary tax collected by the merchant on behalf of municipal and state authorities.
Final Out-of-Pocket Cost
The bottom-line total amount charged to your credit card or cash payment at checkout.
Frequently asked questions
Is sales tax calculated before or after the discount?
In almost all US states and countries, sales tax is calculated on the discounted subtotal after store discounts are subtracted.
How do I calculate a 20% discount quickly in my head?
Divide the price by 10 to find 10%, then double that amount to get 20% (e.g. 10% of $50 is $5; 20% is $10).
What states have 0% sales tax?
Alaska, Delaware, Montana, New Hampshire, and Oregon have no state-level general sales tax.
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