Discount and sales tax calculator
Registers discount first and tax second. This tool shows every intermediate figure so you can reconcile a promotional receipt line by line.
Quick answer
Sales tax is charged on the discounted price when the discount comes from the seller. A $100 item at 20% off in an 8.25% jurisdiction is taxed on $80: $6.60 tax, $86.60 due.
Discount, then tax
Registers tax the discounted subtotal, not the list price, whenever the discount is a store discount. Manufacturer coupons are treated differently in several states — check the state rules page before relying on this for filing.
Questions people ask
Discount ordering and coupon treatment.
Is sales tax charged before or after a discount?
After. A store discount reduces the taxable selling price, so tax is calculated on the discounted subtotal. A $100 item at 20% off is taxed on $80.
What about manufacturer coupons?
Several states treat a manufacturer coupon as third-party payment rather than a price reduction, so tax is due on the full pre-coupon price. Store coupons almost always reduce the taxable amount.
How do I stack two discounts?
Apply them sequentially to the running subtotal rather than adding the percentages. 20% then 10% off $100 is $72, not $70.
State-by-state taxability rules
Sources & transparency
- No external data used — results are computed in your browser from the numbers you enter
Last reviewed August 2026. Figures are published for reference and can change; verify with the source agency before filing or contracting. How we build and check this data.