How to Add Sales Tax

Step-by-Step Guide

1. 1

   Step 1: Determine the sales tax rate in your location.

   You can look it up online or ask a sales associate what it will be.
   
   While states usually set a statewide sales tax, some municipalities add their own taxes on top of that.
   
   This means that the sales tax rate can vary drastically when moving between different cities or counties.
   
   Sales tax is not charged on all items you buy.
   
   Check online to see what is, and is not, taxed in your area.
2. 2

   Step 2: Convert the sales tax percentage into a decimal figure.

   Take the percent number and imagine a decimal point after it.
   
   Now move that decimal point two spaces to the left, giving you the decimal equivalent of the sales tax percentage.
   
   For example, if the sales tax rate is 8%, the decimal figure will be .08. , This calculation will give you the amount of tax that will be charged for your purchase.
   
   For example, if the item you want to buy is $20, multiply 20 times .08 and you get
   1.6.
   
   That means you will have to pay $1.60 in sales tax. , This will give you the total price you will have to pay at the register.
   
   Using our same example once again, if you will be charged $1.60 on your $20 item, simply add
   1.6 to 20, for a total of $21.60.
3. 3

   Step 3: Multiply the price of the item by the decimal figure you calculated in the previous step.

4. 4

   Step 4: Add the amount of tax you calculated to the listed price.

Detailed Guide

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