1. Home
  2. Tools
  3. Finance
  4. Tax Calculator
  5. Sales Tax Calculator
Share

Sales Tax Calculator

Updated: May 28, 2018
FINANCE   TAX  
Sales Tax Calculator allows you to calculate the sales tax you need to pay for an amount given the sales tax percentage
Total Tax:
..
Total Cost:
..

Background Information

What does Sales Tax mean?
Sales tax is the money paid to a government for the sales of some goods and services. In some countries, sales tax is referred to as value-added tax or (VAT).
Importance of Sales Tax
Sales tax is important to each state as it is a mechanism used to generate income for the state. At the same time, it tracks sales for each business.
Formula

Sales Tax = Cost Price x Rate

Example

Suppose you buy a car for 20,000 dollars and pay 5% in as tax. Therefore:-

  • Tax = 20,000 x 5% = 20,000 times 0.05
  • Tax = 20,000 x 0.05 = 1,000 dollars

And the cost with tax is 20,000 + 1000 = 21,000

 
Created: May 5, 2018
Online Tool Designed For: Windows, OS X, Android, iOS, Linux
➤