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Sales Tax Calculator
Add sales tax to a price or find the price before tax from a total. Useful for shopping, invoicing and expense reports.
About the Sales Tax Calculator
Add sales tax to a price or find the price before tax from a total. Useful for shopping, invoicing and expense reports.
How to use the Sales Tax Calculator
- Enter the Amount ($) and the Tax Rate (%).
- Choose whether the amount is Before Tax or Inclusive (After Tax).
- Press Calculate Tax Totals to see the tax and the total.
Formula and method
Before tax: Tax = Amount × Rate ÷ 100, Total = Amount + Tax.
Inclusive: Pre-tax price = Total ÷ (1 + Rate ÷ 100).
Worked example
$80 with 8.25% sales tax: tax = $6.60 and the total is $86.60. Working backwards, $86.60 inclusive at 8.25% gives a pre-tax price of $80.00.
Adding tax. An item priced at $80 with 8.25% sales tax has $6.60 of tax, for a total of $86.60.
When to use the Sales Tax Calculator
- Finding the total price of a purchase once sales tax is added.
- Working out the pre-tax price from a tax-inclusive price.
- Pricing goods or services for customers in different areas.
Common mistakes to avoid
- Using the wrong rate. State, county and city rates can combine, so use the rate for the place where the sale happens.
- Adding tax to an amount that already includes tax.
- Forgetting that some items, such as groceries or medicine, may be taxed at a lower rate or not at all.
Tips
- Sales tax rates vary by state, county and city, and some items are exempt.
- Round each line item the way the store does when reconciling receipts.
Frequently asked questions
How do I remove tax from a total?
Divide the total by 1 plus the tax rate as a decimal. For 8% tax, divide by 1.08.
Is sales tax the same as VAT?
Both are consumption taxes, but VAT is collected at each stage of production and sale, while sales tax is charged once at the final sale.
How do I find the price before tax?
Divide the total by (1 + tax rate). For a total of $86.60 at 8.25%, $86.60 ÷ 1.0825 = $80.
Is sales tax the same as VAT?
They are related. Sales tax is charged only at the final sale, while VAT is collected at each stage of the supply chain.