How to Calculate General Sales Tax

Calculate the general sales tax owed on purchases.

For retail sales, the government in many states takes its share of the cost by charging a sales tax. Depending on your location, this sales tax might include only the state taxes or it could be a compilation of city, county and state sales taxes. Inquire with your local tax office for your area's sales tax rate. Use that rate to determine the amount of general sales tax owed on a purchase.

Things You'll Need

• Sales tax percentage
• Calculator

Instructions

1. Divide the sales tax percentage by 100 to get a decimal for the percentage. For instance, if the general sales tax rate equals 5 percent: 5/100 = 0.05.

2. Multiply the sales tax decimal by the purchase price of the item to calculate the general sales tax amount. For example, a $10 item purchased with a 5 percent sales tax: 10 x 0.05 = 0.50 = $0.50.

3. Add the sales tax amount to the original purchase price before taxes to determine the total cost including the general sales tax. For the example: $10 + $0.50 = $10.50.

References

• Basic Mathematics: Calculate Sales Tax

Resources

• Town USA: State Taxes Rates Listing