How Sales Tax Works
Sales tax is a consumption tax imposed by the government on the sale of goods and services. It is usually calculated as a percentage of the selling price and added to the final amount the customer pays.
Formulas Used
Forward Calculation (Pre-tax → Total)
Sales Tax = Pre-tax Price × Tax Rate
Total Price = Pre-tax Price + Sales Tax
Reverse Calculation (Total → Pre-tax)
Pre-tax Price = Total Price ÷ (1 + Tax Rate)
How to Use This Calculator
- Calculate Total with Tax: Enter the pre-tax price and the sales tax rate to see how much tax you will pay and the final total.
- Reverse Calculator: If you only know the total amount paid (including tax), use this to find the original pre-tax price.
Important Notes
- Sales tax rates vary by location (city, county, state). Always use the correct combined rate for your area.
- Some items may be tax-exempt (groceries, clothing in certain states, etc.).
- This calculator assumes a single flat tax rate. Real-world calculations may involve multiple tax jurisdictions.