How do you calculate sales tax and discount?

Do you calculate sales tax before or after discount?

Because discounts are generally offered directly by the retailer and reduce the amount of the sales price and the cash received by the retailer, the sales tax applies to the price after the discount is applied.

How do you calculate sales tax on a sale?

If you know the state sales tax rate, you can calculate the retail price from the total price.

  1. Divide the state sales tax rate by 100 to convert it to a decimal. …
  2. Add 1 to the state sales tax rate as a decimal. …
  3. Divide the result by the total price to find the retail price.

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What is sales tax formula?

The formula for calculating the sales tax on a good or service is: selling price x sales tax rate, and when calculating the total cost of a purchase, the formula is: total sale amount = selling price + sales tax.

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How do you add 6% sales tax?

Calculating sales tax on a product or service is straightforward: Simply multiply the cost of the product or service by the tax rate. For example, if you operate your business in a state with a 6% sales tax and you sell chairs for $100 each, you would multiply $100 by 6%, which equals $6, the total amount of sales tax.

What is the formula of discount%?

The formula to calculate the discount rate is: Discount % = (Discount/List Price) × 100.

What is the formula to calculate tax?

The most straightforward way to calculate effective tax rate is to divide the income tax expenses by the earnings (or income earned) before taxes. For example, if a company earned $100,000 and paid $25,000 in taxes, the effective tax rate is equal to 25,000 ÷ 100,000 or 0.25.

What is the sale price of a $15 shirt that is 20% off?

Sale Price = $12 (answer). This means the cost of the item to you is $12. You will pay $12 for a item with original price of $15 when discounted 20%. In this example, if you buy an item at $15 with 20% discount, you will pay 15 – 3 = 12 dollars.

What is the tax on a $50 pair of shoes if the tax rate is 6?

Step-by-step explanation:

If the tax rate is 6%, we need to find 6% of $50. 6% is equal to 0.06 so we can find the answer by multiplying 0.06 and 50.

How do you do tax and discount in math?

  1. The rate is usually given as a percent.
  2. To find the discount, multiply the rate (as a decimal) by the original price.
  3. To find the sale price, subtract the discount from original price. …
  4. The rate is usually given as a percent.
  5. To find the tax, multiply the rate (as a decimal) by the original price.
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How do I calculate tax from a total?

How the sales tax decalculator works

  1. Step 1: take the total price and divide it by one plus the tax rate.
  2. Step 2: multiply the result from step one by the tax rate to get the dollars of tax.
  3. Step 3: subtract the dollars of tax from step 2 from the total price.
  4. Pre-Tax Price = TP – [(TP / (1 + r) x r]
  5. TP = Total Price.

What is an example of a sales tax?

Sales tax is an additional amount of money you pay based on a percentage of the selling price of goods and services that are purchased. For example, if you purchase a new television for $400 and live in an area where the sales tax is 7%, you would pay $28 in sales tax. Your total bill would be $428.

What is the formula for sales tax in Excel?

Sometimes, you may get the price exclusive of tax. In this condition, you can easily calculate the sales tax by multiplying the price and tax rate. Select the cell you will place the calculated result, enter the formula =B1*B2 (B1 is the price exclusive of tax, and B2 is the tax rate), and press the Enter key.

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