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United States Tax Calculator (2026) β€” Add or Reverse Tax

United States charges no national VAT/GST, a 25.6% corporate tax rate, and a 37% top personal income tax rate.

β€”
Sales tax (state)
25.6%
Corporate tax
37%
Top personal tax
23.37%
World avg. corporate

How to use this calculator:

  1. Purchase mode β€” add Sales tax (state) to a pre-tax price, or reverse a tax-included total to find the pre-tax price and exact tax paid.
  2. Profit / salary modes β€” enter an amount to see the corporate tax owed or a ceiling estimate of personal tax at the top marginal rate.

Understanding United States's Tax System

United States has no national VAT or GST. Its statutory corporate income tax rate is 25.6%, above the 23.37% global average. The top personal income tax rate is 37%.

No federal VAT β€” state sales taxes average ~6.4% combined. Corporate = 21% federal + average state.

Region

North America

Sales tax (state) rate

β€”

vs. world average corporate rate

+2.2 points above the 23.37% global average

Why Reverse Tax Calculation Matters

Receipts and invoices usually show only the tax-included total β€” not the pre-tax price. Reversing the calculation matters for bookkeeping, expense claims, and cross-border price comparisons. Because dividing by (1 + rate) isn't the same as simply subtracting the rate, doing this by hand is a common source of errors β€” select "Reverse" in the purchase-mode calculator above to handle it exactly.

History & Context

The US federal income tax traces to the 16th Amendment, ratified February 3, 1913, after the Supreme Court had previously struck down an earlier attempt. The Revenue Act of 1913 taxed incomes above $3,000 at just 1%, rising to a 6% top rate above $500,000 β€” a far cry from today's 37% top bracket.

Unlike almost every other country on this list, the US has no federal VAT or GST at all β€” consumption tax exists only at the state and local level as sales tax, which is why this page's VAT-mode calculation shows the average combined state rate rather than a national rate.

Business Use Case

A US business selling nationally must navigate federal corporate income tax (21% federal, plus average state corporate tax bringing the combined rate to roughly 25.6%) alongside a patchwork of state and local sales taxes β€” a fundamentally different structure than the single national VAT most other countries use.

Real-World Examples

Sales tax (state) on a purchase

A $1,000.00 purchase in United States at β€”:

  • Tax: $1,000.00 Γ— β€” = $0.00
  • Total: $1,000.00

Corporate tax on profit

$1,000.00 in company profit in United States at 25.6%:

  • Tax: $1,000.00 Γ— 25.6% = $256.00
  • After-tax profit: $744.00

Frequently Asked Questions β€” United States Taxes

What is the Sales tax (state) rate in United States?β–Ύ
United States has no national VAT or GST.
What is the corporate tax rate in United States?β–Ύ
United States's statutory corporate income tax rate is 25.6%, compared to the 23.37% global average.
What is the top personal income tax rate in United States?β–Ύ
United States's top marginal personal income tax rate is 37%.
How is tax calculated on a purchase in United States?β–Ύ
Multiply the price by the Sales tax (state) rate. A $1,000.00 purchase at β€” adds $0.00 in tax, for a total of $1,000.00.
How do I reverse United States's Sales tax (state) to find the price before tax?β–Ύ
Divide the total (tax-included) price by 1 plus the Sales tax (state) rate as a decimal. Select "Reverse" in the purchase-mode calculator above to do this automatically for United States's β€” rate.

References & Sources

Rates last verified for 2026. Tax rates change through national budgets β€” always confirm current figures with a qualified local tax advisor before making business or relocation decisions. This tool is for estimation and educational purposes only and is not tax, legal, or accounting advice.

J

Jordan Hayes

Verified Author

Lead Content Editor & Personal Finance Specialist

Jordan Hayes is a personal finance content strategist with 9+ years building educational finance and health resources. He has written and fact-checked over 200 personal finance guides covering mortgage amortization, retirement planning, tax strategy, and budgeting. His work applies IRS publications, Federal Reserve data, and peer-reviewed research to make complex calculations accessible.

Personal FinanceMortgage & Loan AnalysisTax StrategyRetirement PlanningTechnical Writing

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