Sales Tax Calculator Formula
Understand the math behind the sales tax calculator. Each variable explained with a worked example.
Formulas Used
Sales Tax Amount
tax_amount = price * tax_rate / 100Total Price
total_price = price + price * tax_rate / 100Variables
| Variable | Description | Default |
|---|---|---|
price | Price Before Tax(USD) | 100 |
tax_rate | Sales Tax Rate(%) | 8.25 |
How It Works
How to Calculate Sales Tax
Formula
Tax Amount = Price x (Tax Rate / 100) Total Price = Price + Tax Amount
Sales tax rates vary by state and locality. Always check your local rate for accuracy.
Worked Example
A $100 item with 8.25% sales tax.
price = 100tax_rate = 8.25
- 01Tax = $100 x 0.0825 = $8.25
- 02Total = $100 + $8.25 = $108.25
Ready to run the numbers?
Open Sales Tax Calculator