Sales Tax Calculation
To calculate sales tax from total amount received, divide by “1 + sales tax rate”. For example, 6% sales tax on $100 item is $6. Total is $100 + $6 = $106.
To find sales tax percentage from total cost, first subtract item cost from total cost to get sales tax amount. Then divide sales tax amount by item cost.
Some states don’t charge sales tax. Sales tax is charged on gross sales price. It’s a percentage of the total cost paid by customer.
Total Cost Including Sales Tax
To calculate total cost including sales tax, convert tax percentage to decimal by moving decimal point two places left. Multiply item cost by decimal percentage. Add result to item cost.
For example, 6.35% tax on $27.95 item. Move decimal on 6.35% left twice to get 0.0635. Multiply $27.95 by 0.0635 equals $1.77 sales tax. Add to get $29.72 total with tax.
Sales Tax Rate from Total Cost
To find sales tax percentage when you know total cost, subtract item cost from total. Divide result by item cost to get rate. Then convert decimal to percentage.
Calculating Sales Tax Backwards from Total
How do you calculate sales tax backwards from total?
To calculate sales tax backwards from total, divide total amount by one plus tax rate. Subtract item cost from result to get sales tax paid. Divide tax paid by item cost to get rate. Multiply rate by 100 for percentage.
Dividing the Total to Get Sales Tax Amount
How do I divide a total to get sales tax amount?
How do you calculate sales tax from a total amount? Divide the total amount by one plus the sales tax rate. For example, if the total is $100 with a sales tax rate of 6%, divide $100 by 1.06 to get $94.34. This is the amount before sales tax.