Question 1

Which US states have no sales tax?

Accepted Answer

Five states have no statewide sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. Note that Alaska allows local municipalities to impose their own sales taxes, so some Alaskan cities do charge sales tax even though the state itself does not. Delaware, Montana, New Hampshire, and Oregon have zero sales tax at state and local level.

Question 2

How do I calculate sales tax on a purchase?

Accepted Answer

Multiply the pre-tax price by the tax rate as a decimal. Example: a $200 item in California at 7.25% state rate = $200 × 0.0725 = $14.50 tax, total $214.50. For city-level rates (e.g. Los Angeles at 10.25%), use $200 × 0.1025 = $20.50 tax, total $220.50. Our sales tax calculator does this instantly — select your state and city, enter the amount.

Question 3

What is the highest sales tax state in 2026?

Accepted Answer

Louisiana has the highest average combined sales tax rate in the US at approximately 9.56%. Tennessee is second at 9.55%, followed by Arkansas (9.47%), Washington (9.38%), and Alabama (9.24%). California has the highest state base rate at 7.25%, but California's combined rate of 8.72% is lower than many other states.

Question 4

How do I calculate reverse sales tax (remove tax from a total)?

Accepted Answer

To find the pre-tax price from a tax-inclusive total, divide by (1 + tax rate as decimal). Example: $108 total with 8% tax = $108 ÷ 1.08 = $100 pre-tax price. The tax portion is $8. Formula: pre-tax price = gross total ÷ (1 + tax rate / 100). Our calculator has a "Remove Tax" mode that does this automatically.

Question 5

Are groceries taxed in the US?

Accepted Answer

It varies significantly by state. Most states exempt unprepared groceries from sales tax, including California, Texas, New York, Florida, and Pennsylvania. However, some states fully tax groceries — including Mississippi, Alabama, South Dakota, and Hawaii. Tennessee taxes groceries at a reduced 4% state rate instead of the full 7%. Restaurant meals and prepared food are almost always taxable in every state.

Question 6

What is economic nexus and why does it matter for online sales?

Accepted Answer

Economic nexus means an out-of-state seller must collect sales tax in a state once they exceed a threshold — typically $100,000 in sales or 200 transactions per year in that state. This applies since the 2018 South Dakota v. Wayfair Supreme Court ruling. If you sell online and ship to customers in multiple states, you may be required to register and collect tax in those states once you cross their nexus thresholds.

Question 7

What is the UK VAT rate in 2026?

Accepted Answer

The UK standard VAT rate is 20% in 2026 — unchanged since January 2011. A reduced 5% rate applies to domestic energy (gas and electricity), women's sanitary products, and children's car seats. Zero-rated goods (taxed at 0%) include most food for home consumption, children's clothing and footwear, books and newspapers, prescription medicines, and public transport tickets.

Question 8

How do I remove VAT from a price in the UK?

Accepted Answer

To remove 20% UK VAT from a VAT-inclusive gross price, divide by 1.20. Example: £120 ÷ 1.20 = £100 ex-VAT. The VAT element is £20. For the 5% reduced rate: divide by 1.05. Formula: ex-VAT price = gross price ÷ (1 + VAT rate / 100). This is called a reverse VAT or VAT extraction calculation.

Question 9

How much VAT is on £100 in the UK?

Accepted Answer

At the 20% standard UK VAT rate: the VAT on a net price of £100 is £20, making the gross price £120. If you already have a gross price of £100 (VAT-inclusive), the VAT element within it is £100 ÷ 1.20 × 0.20 = £16.67, and the net price is £83.33.

Question 10

What is the VAT registration threshold in the UK?

Accepted Answer

UK businesses must register for VAT when their taxable turnover exceeds £90,000 in any rolling 12-month period (2024/25 threshold). Voluntary registration is allowed below this threshold — useful if you want to reclaim input VAT on purchases. VAT returns are normally submitted quarterly via Making Tax Digital (MTD) compliant software.

Question 11

What are the GST rates in India in 2026?

Accepted Answer

India's GST has five slabs: 0% (nil/exempt) for essential food items, healthcare, and education; 5% for packaged food, essential medicines, and economy travel; 12% for processed food, computers, and business-class travel; 18% for most services, electronics, and telecom (most common rate); and 28% for luxury goods, tobacco, and aerated drinks, often with additional cess.

Question 12

What is the difference between CGST, SGST, and IGST?

Accepted Answer

CGST (Central GST) and SGST (State GST) apply to intra-state sales (within the same state) — each is half the GST slab rate. For example, 18% GST = 9% CGST + 9% SGST. IGST (Integrated GST) applies to inter-state sales (across state borders) at the full slab rate, collected by the Centre and then shared with the destination state.

Question 13

Which income tax regime is better — old or new for FY 2025-26?

Accepted Answer

It depends on your deductions. If your total deductions (80C + 80D + HRA + home loan interest + others) exceed approximately ₹3.75 lakh, the old regime typically saves more tax. If your deductions are low or zero, the new regime is usually better — especially for individuals with gross salary under ₹7.75 lakh who pay zero tax under the new regime due to the 87A rebate and ₹75,000 standard deduction.

Question 14

Is income up to ₹7 lakh tax-free under the new regime?

Accepted Answer

Yes. Under the new tax regime for FY 2025-26, after deducting the ₹75,000 standard deduction, if your taxable income does not exceed ₹7 lakh, the Section 87A rebate makes your income tax zero. This means salaried individuals with a gross salary up to ₹7.75 lakh pay zero income tax under the new regime.

Question 15

What is the HST rate in Ontario in 2026?

Accepted Answer

Ontario's HST (Harmonized Sales Tax) rate is 13% — combining the 5% federal GST and 8% Ontario provincial portion. HST is collected as a single tax by the Canada Revenue Agency. To add 13% HST: multiply by 1.13. To remove HST from a gross total: divide by 1.13.

Question 16

Does Alberta have HST or PST?

Accepted Answer

Alberta has neither HST nor PST — it is the only Canadian province with no provincial sales tax. Only the 5% federal GST applies in Alberta. This makes Alberta the lowest-tax province for consumer purchases and a popular destination for large purchases by residents of neighbouring provinces.

Question 17

Are groceries taxed in Canada?

Accepted Answer

Most basic grocery items are zero-rated for federal GST/HST purposes — meaning the 0% rate applies and businesses can still claim input tax credits. This covers most food for human consumption sold in grocery stores. However, restaurant meals, carbonated beverages, candy, chips, and food sold ready-to-eat are taxable at the full combined rate.

Question 18

What is the difference between VAT and sales tax?

Accepted Answer

VAT (Value Added Tax) is collected at every stage of the supply chain. Businesses collect VAT on sales and reclaim VAT paid on purchases — only the final consumer bears the full cost. US sales tax is collected only at the final point of sale to the consumer. The end result for the consumer is similar, but the collection mechanism is fundamentally different. VAT is used by over 160 countries; sales tax is primarily a US system.

Question 19

How do I calculate VAT for any country?

Accepted Answer

To add VAT: multiply the net price by (1 + VAT rate / 100). Example: €100 + 20% VAT = €100 × 1.20 = €120. To remove VAT from a gross price: divide by (1 + VAT rate / 100). Example: €120 ÷ 1.20 = €100 net. Our VAT calculator supports 25+ countries — just select your country and the correct rate appears automatically.

Question 20

Does FastTaxCalc store my data?

Accepted Answer

No. All calculations on FastTaxCalc run entirely in your browser using JavaScript. No data you enter — amounts, income, deductions, or any other inputs — is sent to our servers, stored, or logged. Each page session is completely private.

Tax Calculator — Frequently Asked Questions

🇺🇸 US Sales Tax

🇬🇧 UK VAT

🇮🇳 India GST

🇨🇦 Canada GST/HST

🌍 General Tax Questions

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