How to Calculate Sales Tax
Multiply the cost of an item or service by the sales tax in order to find out the total cost., Once you've calculated sales tax, make sure to add it to the original cost to get the total cost.
Step-by-Step Guide
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Step 1: Multiply the cost of an item or service by the sales tax in order to find out the total cost.
The equation looks like this:
Item or service cost x sales tax (in decimal form) = total sales tax.
Add the total sales tax to the Item or service cost to get your total cost.
Make sure you put the sales tax into decimal form.
You do this by taking the percentage and sliding the decimal point two places to the left:
7.5% sales tax becomes .075 in decimal form
3.4% sales tax becomes .034 in decimal form 5% sales tax becomes .05 in decimal form Example: $60 (item cost) x .075 (sales tax) = $4.5 total sales tax -
Step 2: Once you've calculated sales tax
If the total sales tax is $5 and your original item cost was $100, your total cost will be $105. -
Step 3: make sure to add it to the original cost to get the total cost.
Detailed Guide
The equation looks like this:
Item or service cost x sales tax (in decimal form) = total sales tax.
Add the total sales tax to the Item or service cost to get your total cost.
Make sure you put the sales tax into decimal form.
You do this by taking the percentage and sliding the decimal point two places to the left:
7.5% sales tax becomes .075 in decimal form
3.4% sales tax becomes .034 in decimal form 5% sales tax becomes .05 in decimal form Example: $60 (item cost) x .075 (sales tax) = $4.5 total sales tax
If the total sales tax is $5 and your original item cost was $100, your total cost will be $105.
About the Author
Gary Shaw
Enthusiastic about teaching home improvement techniques through clear, step-by-step guides.
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