Calculating Sales Tax
Calculating an 8.25% sales tax is quite simple once knowing a product’s price before taxes. Just multiply this amount by the sales tax rate in decimal format (0.0825), then add the resulting value to the pre-tax price. Sales tax ensures consumers and businesses pay or collect correct amounts.
Example Calculation
First, find the total amount including tax. Here the purchase is $100 and tax is 8.25%, so the total is $108.25. To calculate the sales tax, divide the total by 1.0825, then multiply by the purchase amount. Here, that is $8.
Sales Tax Rates and Fund Allocation
Sales tax helps fund public services. The rate varies between jurisdictions. Businesses collect then remit it to the government. Understanding the calculation helps avoid surprises during reviews.
Los Angeles Sales Tax Details
The 9.5% Los Angeles sales tax rate consists of 6% California state sales tax, 0.25% county sales tax, and 3.25% special tax. No city tax applies. The formula is: tax = sale x rate. Here, 9.5%.
Remember, the total price equals the net price plus the sales tax amount.