Sales Tax Formula
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FAQ
You can multiply the dollar amount by 1. X, where X represents the sales tax after dividing by 100. For example, if something is $20 and the sales tax is 7% you would multiply $20 times 1.07 and you would pay $21.40. Or add 7 cents for every dollar.
6% would be 0.06, all you do is move the decimal two spaces to the left. For example 6% sales tax on an item would be calculated by multiplying the total cost by the decimal form of the percentage. Say the total cost was $30.00, it would be calculated as 30 x 0.06 = 1.8 then add the quotient to the original cost.
Adding the 6% sales tax rate to this, the total price is 106% of the purchase price. Converting 100% into a decimal gives us 1, so 106% is 1.06. Now, just multiply by the purchase price to get the total price.
How to Calculate Sales Tax Find list price and tax percentage. Divide tax percentage by 100 to get tax rate as a decimal. Multiply list price by decimal tax rate to get tax amount. Add tax amount to list price to get total price.
Know the retail price and the sales tax percentage. Divide the sales tax percentage by 100 to get a decimal. Multiply the retail price by the decimal to calculate the sales tax amount.