Before purchasing an item, it is important to know how much it will cost.In order to determine the total cost, sales tax must be calculated.The tax impact on a purchase is more significant when the sales tax rates are increasing.You can learn how to calculate sales tax with these tips.
Step 1: Multiply the cost of an item or service by the sales tax in order to find out the total cost.
The total sales tax is divided by the item or service cost.To get your total cost, add the total sales tax to the item or service cost.
Step 2: To get the total cost, add sales tax to the original cost.
Your total cost will be $105 if the total sales tax is $5 and your original item cost is $100.
Step 3: You can try this example.
Colorado has a sales tax of 2.9%.The basketball is not cheap.What is the total cost of the basketball?
Step 4: Try another example.
Mississippi has a sales tax of 7%.The groceries cost $300.How much is the grocery bill?
Step 5: You can try a third example.
Massachusetts has a sales tax of 6.05%.The car is worth $15,000.What is the total cost of a car?
Step 6: If you know the original cost of the item, you can de-calculate.
If you know how much the item costs you can figure out the sales tax rate.
Step 7: Some American states don't have sales tax.
Delaware, New Hampshire, Montana, Oregon and Alaska are currently included.
Step 8: States have different taxes for different goods.
The District of Columbia has a general sales tax of 6 and a 10% tax on liquor and prepared food.New Hampshire has no general sales tax, but still taxes restaurants, food services, hotels, room rentals, and motor vehicle rentals at 9%.Massachusetts only starts counting sales tax when the bill exceeds $175.If you buy less than $175 worth of clothing in Massachusetts, the state government won't tax it.
Step 9: When calculating sales tax, be sure to check with your state and city.
We don't often talk about the sales tax in the city.Most people lump it in with the state sales tax.Check your state and city tax laws to find out how much you'll pay in taxes for a certain item.