How to Calculate Sales Tax
Sales tax is a consumption tax charged on the sale of goods and services. Rates vary by state and jurisdiction in the US.
Sales Tax Formula
Tax Amount = Price × (Tax Rate / 100)
Where:
- Tax Amount = Sales tax to be paid
- Price = Original price of the item
- Tax Rate = Applicable sales tax percentage
Step-by-Step:
- 1
Find the price
Note the pre-tax price of the item.
- 2
Know the tax rate
Check your state/local sales tax rate.
- 3
Calculate tax
Multiply price by tax rate / 100.
- 4
Find total
Add tax to original price.
Worked Examples:
$50 item with 8.25% tax
Price: $50.00Tax Rate: 8.25%
Result: Tax = $4.13, Total = $54.13
Tax = 50 × 0.0825 = $4.13