How to Estimate Sales Taxes
Sales tax can add up much more quickly than you expect and you may have a total at the register that is much higher than you had planned to pay. It is important to account for sales tax when living on a budget, and to add that to the amount that you had budgeted. Estimating the tax is fairly easy and can be determined with a simple calculation. It is important to get accurate tax rates to make your estimate as close as possible.
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Instructions
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Check the current tax rates for the state you will purchasing the items in (See Resources).
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Find the appropriate tax for the type of items that will be purchased. Alcohol, cigarettes and gasoline have different tax rates than most other items.
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Look for exemptions. Most services and groceries are exempt from sales tax. Fast food and restaurants are not exempt and may even have a higher tax rate than other merchandise. This may vary by the county within the state.
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Add the total cost of your purchases minus any exempt items. Subtract any savings, such as sales or other discounts. Multiply the total by the appropriate tax rate to determine the total cost of the tax. For example, the local sales tax on items is 5 percent and you want to purchase an item that cost $50 with a coupon for $10 off. You would subtract the $10 from the $50 for a total of $40. Next, multiply the $40 by the 5% tax (40 x .05) for a sum of $2. Add the purchase price plus the sales tax amount ($40 + $2) for a total cost of $42.
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Tips & Warnings
It is advisable to use a calculator rather than trying to do the calculations in your head.
