How do you calculate state sales tax?


Quick Answer

Sales tax is calculated using a relatively straightforward formula. Take the price of the item, and multiply it by the percentage of sales tax being levied.

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Full Answer

For example, suppose that an item costs 20 dollars and there is a six percent state sales tax. Multiplying 20 by .06 yields 1.2. This means that the state sales tax for that item is $1.20. To get the final price of the item, add that number to the original price. In this case, the final price for that item would be $21.20. Several websites also offer calculators which figure the tax for the user.

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