How to Charge Variable Sales Tax Rates
Sales tax on purchases can vary from state to state and from purchasing context to context. Determining the amount of sales tax to charge can be done by performing a couple of quick calculations involving the sales tax percentage and sales amount. Keeping track of consumer sales tax is an important part of running a business's financial books, whether that entity is large or small.
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Instructions
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1
Determine the sales tax rate in its percentage form. If the sales tax percentage is 6 percent for retail goods and 8 percent for commercial goods, for example, the percentage will convert to .06 and .08, respectively, for use in the formula.
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2
Multiply the sales tax multiplier by the purchase price. If the purchase price is $300 for each item or $600 total, then the amount of sales tax would be $18 at a 6 percent sales tax rate for the retail goods and $24 at an 8 percent sales tax rate for the commercial goods.
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3
Add the amount that you've calculated in Step 2 to the total purchase price. Following this example, the total sales price would be $642 or $318 for the retail goods and $324 for the commercial goods.
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