Calculate tax amounts and final purchase totals
Whether you are a consumer trying to find the final price at checkout or a business owner creating an invoice, calculating sales tax accurately is essential.
Sales tax is a consumption tax imposed by the government on the sale of goods and services. It is usually a percentage of the purchase price and is collected by the retailer at the point of sale.
To find the total price, multiply the original price by the tax rate (as a decimal) to find the tax amount, then add that amount to the original price.
To find the pre-tax price from a total, divide the total amount by (1 + tax rate). For example, if the tax is 10%, divide the total by 1.10.