Price, margin and sales tax calculator
For sellers setting shelf prices: work from cost and a margin target to the price on the tag, then see what the customer actually hands over once local tax is added.
Quick answer
Shelf price = cost ÷ (1 − margin). A $60 unit at a 40% gross margin prices at $100.00, returning $40.00 profit. At an 8.25% combined rate the customer pays $108.25 — the $8.25 is the state's, not yours.
Price for a target margin
Margin here is gross margin on price (price − cost ÷ price), not markup on cost. Sales tax is collected on the customer's behalf and is never part of revenue or margin.
Questions people ask
Pricing and bookkeeping questions.
Is sales tax part of my revenue?
No. Sales tax is collected on behalf of the state and remitted, so it never appears in revenue, gross profit or margin. Recording it as income overstates both revenue and tax liability.
What is the difference between margin and markup?
Margin is profit divided by selling price; markup is profit divided by cost. A 40% margin on a $60 item is a $100 price, which is a 67% markup.
Should I quote prices tax-inclusive?
In the US, retail prices are conventionally quoted pre-tax and tax is added at the register. Tax-inclusive pricing is legal in most states but requires you to back the tax out of every sale for filing.
Compare combined rates across metros before you price
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.