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Tax-included price calculator

Charge round prices with sales tax built in? See how much of each price is tax you owe the state, and what to charge to keep what you need.

At 8%, a $5.00 price is

$4.63 + $0.37 tax

You keep $4.63, and $0.37 of every sale is tax you owe. To keep $10.00 before tax, charge $10.80: round up to $11.00, or $11.

Round prices at 8%, split into the price before tax and the tax
Price, tax includedBefore taxTax
$1$0.93$0.07
$2$1.85$0.15
$3$2.78$0.22
$4$3.70$0.30
$5$4.63$0.37
$6$5.56$0.44
$8$7.41$0.59
$10$9.26$0.74
$12$11.11$0.89
$15$13.89$1.11
$20$18.52$1.48
$25$23.15$1.85

Use your combined state and local rate for where you sell. Tax is worked out per sale and rounded to the cent.

How it's worked out

A tax-included price is the price before tax plus the tax on it. So the price before tax is the price divided by 1 plus the rate: at 8%, $5 ÷ 1.08 = $4.63, and the tax is the $0.37 left over. It's not 8% of $5, which would be $0.40.

Check your state allows it

Some states don't let vendors build sales tax into the price, and those that do generally require a sign saying so [2]. Louisiana, for example, allows either, and asks vendors who include it to post a sign in a conspicuous place that reads "All prices include sales tax." [1] Ask your state's department of revenue before you price this way.

The tax is still owed

Whether you add it at the register or build it in, the state expects the tax that should have been collected on each sale [2]. A vendor who didn't collect it pays it out of their own pocket [1]. Keep a count of sales at each price, and the table above turns them into the tax to report.

Questions

How do I work out the sales tax included in a price?

Divide the price by 1 plus the tax rate to get the price before tax; the rest is the tax. At 8%, a $5 price is $4.63 before tax and $0.37 tax.

Can I include sales tax in my prices at a market?

It depends on the state. Some don't allow it. Those that do generally require a sign saying the tax is included: Louisiana's wording is "All prices include sales tax."

Do I still owe sales tax if I didn't add it on?

Yes. The state expects the tax that should have been collected on each sale, whether you added it at the register or built it into the price.

Why price with tax included?

Round prices are quicker at a busy stall and need less change. The cost is that the tax comes out of the round number, so price high enough to keep what you need before tax.

Sources

  1. What if I didn't collect sales tax?, Louisiana Department of Revenue. Read October 31, 2026.
  2. Sales tax at farmers markets, explained, TaxJar. Read October 31, 2026.

Read more: what to charge for what you make, and how much change to bring.

Round prices, no change

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