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Sales tax is calculated

User Sventies
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2 Answers

4 votes

To calculate sales tax you must:

1. Know the sales tax rate

2. Use the sales tax formula which is

Sales Tax = Total Sales X Sales Tax Rate

Example:

You have a business and you must collect a sales tax at a rate of 8.00%. Your customer bill before adding tax is $399.

Sales tax = $399 times 0.08

Sales tax would be $31.92.

$399 + $31.92 = $430.92 would be the total including sales tax.

User Jkalivas
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7.1k points
2 votes

B. using a percentage of the price of an item.

User IlCosmico
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6.9k points