Enter the amount before tax and the sales tax rate into the calculator to determine your total amount including tax.
Sales Tax Calculation Formula
The following formula is used to calculate the total amount including sales tax.
Total Amount = Amount Before Tax * (1 + Sales Tax Rate / 100)
Variables:
- Total Amount is the amount after tax ($)
- Amount Before Tax is the initial amount before tax ($)
- Sales Tax Rate is the percentage of tax applied to the amount before tax (%)
To calculate the total amount, multiply the amount before tax by the sales tax rate and add the result to the amount before tax.
What is Sales Tax Calculation?
Sales tax calculation refers to the process of determining the total amount you need to pay for a product or service after including the sales tax. This involves understanding the base price of the item, the applicable sales tax rate, and accurately calculating the final amount to ensure correct budgeting and financial planning.
How to Calculate Sales Tax?
The following steps outline how to calculate the total amount including sales tax using the given formula.
- First, determine the amount before tax.
- Next, determine the applicable sales tax rate.
- Use the formula from above: Total Amount = Amount Before Tax * (1 + Sales Tax Rate / 100).
- Finally, calculate the total amount by plugging in the values.
- After inserting the variables and calculating the result, check your answer with the calculator above.
Example Problem:
Use the following variables as an example problem to test your knowledge.
Amount Before Tax = $100
Sales Tax Rate = 14.975%
FAQ
1. What is amount before tax?
Amount before tax is the initial cost of a product or service before any sales tax is applied.
2. How is total amount different