Sales Tax Markup Calculator
Price for a target margin, with tax kept out of it.
Rates change with budgets and local ballot measures, and the rate that applies depends on the delivery address and product category. Treat these as planning figures, not as a filing.
Price to display
$40.00
$40.00 net at 55% margin
Sales tax is a pass-through, so it never enters the margin calculation. Your margin is 55% of $40.00, regardless of what the tax adds at checkout.
How the Sales Tax Markup Calculator works
Sales tax is a pass-through, so it should never enter your margin calculation — you are collecting it on someone else's behalf. The mistake that costs money is marking up the tax-inclusive figure, which quietly shrinks your real margin in every market that displays inclusive prices.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
Should margin be calculated before or after tax?
Before, always. Tax is collected on behalf of the state and remitted; it is never your revenue. Calculating margin on a tax-inclusive figure overstates it by the tax rate.
What is the difference between margin and markup?
Margin is profit as a share of the selling price; markup is profit as a share of cost. A 50% margin is a 100% markup. Confusing them is the fastest way to underprice.
How do I price in a tax-inclusive market?
Work out the net price your margin requires, add the tax to get the display price, then decide whether to round. If you round down to a charm price, the rounding comes out of your margin — so build it in first.
Does this change with tax rate changes?
If prices are exclusive, no — your net is unaffected. If inclusive, a rate rise takes the difference out of your margin unless you raise the display price, which is why inclusive markets see visible price rises after VAT changes.