How to calculate sales tax?

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Asked by Demi , Last updated: Nov 09, 2024

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4 Answers

Awais.taxcruncher

Answered Dec 03, 2020

A sales tax is a compulsory amount paid by the government on goods bought by customers and corporations. For items such as schooling, health care, road maintenance, and transportation, the government utilizes the money collected from sales taxes. The customer receives sales taxes from individual retailers and then sends them to the government. In reality, the stores don't retain any of the money they collect from customers as it directly flows through to the government.

N. Reyes, Writer, B.ed, California

Answered Sep 30, 2020

Sale tax calculates the amount of tax included in a gross price as well as the amount you should add to the net price. The reason why sales tax is calculated is to know the total cost of all the commodities. Here are tips that will guide you through calculating sales tax.

Some countries in America, like Delaware, Oregon, Alaska, Montana, do not have sales tax. Sales tax is usually levied by the government on the sales of a different commodity.

Sales tax is calculated as
Sales tax = Total Sales x Sales Tax Rate
With the formula above all, you need to do is insert your values, total sales, and sales tax rate, which will give the sales tax.

E. Jonathan, Content Team Lead, Degree in Literature, Los Angeles, California

Answered Aug 25, 2020

You might be wondering when you will normally have to calculate sales tax. This would usually occur when you will calculate the amount of tax that you would have to pay for after getting tax or services that you like.

There are some sales tax calculators that you can find online.

* You need to multiply the cost of the item or the service that you have received so that you can figure out the total cost.

* The equation is going to be like this: item/service (cost) (sales tax) = total sales tax.

* Once you are able to compute for everything, you will get the total cost.

C. Lucan, Copywriter, Literature Major, Baton Rouge, Louisiana

Answered Aug 20, 2020

There are some information that you should first of all note before you calculate tax sales.

• Note that not all states have sales tax.

• Note that sales taxes differ across states for different goods.

• Dig deeper by knowing your city's tax rate and tax laws.
A method to use while calculating sales tax is to calculate total cost. The process is a simple one.

• You can obtain the total sales tax by multiplying the cost of the goods or service by the sales tax. That is; total sales tax = goods or service cost × sales tax.

• The sales tax is usually said in percentage form. So, convert it to decimal form. For example, a 10% tax sales becomes 0.1.

• So, to get the total amount of the product or service, add your obtained total sales tax to the original cost of the product or service.

• If you are good at mathematics, you will know how to obtain any value (sales tax, original cost or product's cost) with the above explanation.