Use our sales tax calculator to see how much tax is due on a transaction. You can calculate the gross price based on the net price and the tax rate. If you only know the gross price, use the Reverse Sales Calculator to find the net price.
What is the sales tax?
A sales tax is a tax paid to the government for the sales of goods and services. Retailers collect sales tax at the point of sale and then passed it on to the government.
Sales tax is determined on a state and local level. Most states allow counties, cities, and other local areas to impose a sales tax. In addition to that, some items are taxed differently. For example, groceries aren’t taxable in most states.
How to calculate sales tax?
Formula for calculating the amount of sales tax goes:
Sales Tax Amount = Net Price x (Sales Tax Percentage / 100)
In order to calculate the amount of sales tax, you need to know the net price of an item and the sales tax rate in the place you are purchasing an item.
Net price vs gross price
Simply put, net price is the price of a good after deductions like tax or discounts. On the other hand, gross price is the price before the deductions are applied.
How do you calculate gross price from net price?
Gross Price = Net Price + Sales Tax Amount or Gross Price = Net Price * (1 + (Sales Tax Percentage / 100))
How do you calculate net price from gross price?
Net Price = Gross Price / (1 + (Sales Tax Percentage / 100))
Or you can use our sales tax calculator to calculate both net and gross prices.