Sales Tax Calculator
A sales tax calculator computes the added tax amount and total transaction cost from local retail rates or reverses a grand total back to its pre-tax price. Using Total = Pretax × (1 + Rate), it verifies that a 7% sales tax on a $50 purchase adds $3.50.
By Maya Chen (Personal Finance Editor) · Reviewed by Daniel OkoroUpdated · Published
Net Price
$
0
Tax Rate
0%
GROSS TOTAL (INC. TAX)
Tax Amount: $0.00 (0%)
How Does the Sales Tax Calculator Work?
- Multiply the retail price by the tax rate decimal (e.g. 8.25% = 0.0825).
- Add the computed tax amount to the retail price for the gross checkout total.
- To reverse-calculate pre-tax price from total: Divide Total by (1 + Tax Rate / 100).
What Is the Sales Tax Formula?
Tax Amount = Price × (Rate / 100) ; Total = Price + Tax Amount
Multiply price by tax rate to find tax, and sum both for the grand total.
Variables
Price:Pre-tax net price
Rate:Tax percentage
How Do You Calculate Sales Tax Step by Step?
Purchase of $149.50 with an 8.5% state and local sales taxNet Price: $149.50
Tax Rate: 8.5%
Tax: $149.50 × 0.085 = $12.71
Total with tax: $149.50 + $12.71 = $162.21
Final Solution:Total: $162.21 (Tax: $12.71)
Sales Tax Questions and Answers
Divide the total receipt amount by (1 + Tax Rate ÷ 100). For example, if you paid $108 with 8% tax: $108 ÷ 1.08 = $100.
Where Do These Sales Tax Standards Come From?
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