How to Calculate the Sales Tax Percentage

Calculating a sales tax percentage.

Most states charge sales tax on tangible goods to cover the cost of government programs and initiatives---the percentages vary by state. The U.S. Census Bureau estimates that about a third of a state's income comes from sales tax. If you receive a receipt from a store in an unfamiliar state or notice a charge on an online purchase that includes sales tax but no disclosure of the actual percentage, it's a fairly simple calculation to determine the sales tax percentage.

Things You'll Need

• Calculator

Instructions

1. Determine the retail price (less discounts you received) of the items. For the purpose of this example assume the retail price is $50.

2. Subtract the retail price from the total amount charged. This is the total sales tax. Assuming the total amount on your receipt is $54.25, the formula is $54.25 minus $50, which equals $4.25.

3. Divide the sales tax by the retail price. That's $4.25 divided by $50, which equals .085.

4. Multiply the resulting figure (.085) by 100 to get the sales tax percentage (8.5 percent).

References

• ecommerce-guide: Navigating Sales Tax Laws