Sales Tax Calculator
Calculate your sales tax liability using this sales tax calculator
Instead of doing the difficult math yourself, you can save time and effort by using our Sales Tax Calculator for calculating your Tax Amount, Net Amount, and Gross Amount. This tool can help you determine the total cost of any item on your shopping list, whether it is inclusive of tax or exclusive of tax.
Figuring out Sales Tax Calculations.
Sales tax is a type of consumption tax imposed by the government on the sales of products and services. Typically, the business collects the customer's sales tax at the time of the sale and delivers it to the government. A business is responsible for paying sales taxes in a particular jurisdiction. In many circumstances, our tool can assist you in calculating the actual total cost of an item by figuring out the sales tax.
In certain countries, the quoted prices for products and services are the Tax Exclusive values, with sales tax imposed only at the time of purchase. In other countries, the prices indicated are the final Tax Inclusive values, which include sales tax. Our tool will help you calculate both types of sales tax i.e. Tax Inclusive Gross amount and Tax Exclusive Net amount.
How to use the Sales Tax Calculator tool?
You can easily launch our Sales Tax Calculator directly from our home page under the Calculator section. It can help you devise a Gross amount (inclusive of tax) or Net amount (exclusive of tax) without relying on any third-party application. Initially, you can get to know the tool by using the sample values for calculations. It can be done as:
Using the Sample Values:
Before getting into the step-by-step guide, let us make it easy by filling in the sample values.
- Open our Sales Tax Calculator's webpage. You'll see two boxes with labels 'Amount', and 'Sales Tax Rate'. Above these given boxes, there are two radio buttons labeled 'Tax Exclusive', and 'Tax Inclusive'.
- Below the boxes, there are three buttons with blue, green, and orange colors, titled 'Calculate', 'Sample', and 'Reset' respectively.
- Click on the Sample button. It will fill the two fields with sample values of 100$ amount and a 6.5% Sales tax rate on the given amount.
- Now select the radio button of either 'Tax Exclusive' or 'Tax Inclusive' according to your requirement.
- Next, you have to click on the Calculate button to find out the Sales tax figures for the sample input values.
Using your Actual values:
Follow up with the instructions provided to figure out the Sales Tax amount on your entered amount according to your sales tax rate:
- Enter Amount:
- When you open our Sales Tax Calculator's webpage, you'll see the top box with the label 'Amount'. In that field, enter the amount of money on which you want to calculate the tax.
- If you want to change the entered amount, you can use the up and down arrows at the right side of this top box. The up arrow will increase the amount by unity, and the down arrow will decrease it by unity. You can also change the amount by deleting the previously written value and then re-entering the new value.
- Enter Sales Tax Rate (per year):
- Among the two boxes, you'll see the bottom box with the label 'Sales Tax Rate'. In that field, enter the Sales Tax rate as per your region. There is a % sign alongside that field, which indicates that the tax rate should be entered accordingly.
- If you want to change the tax rate, you can use the up and down arrows at the right side of this bottom box. The up arrow will increase the interest rate by unity, and the down arrow will decrease it by unity. You can also change the interest rate by deleting the previously written value and then re-entering the new rate.
- Select Tax Calculation Method
- If you want to calculate the tax figures for tax inclusive case, select the 'Tax Inclusive' radio button at the top.
- If you want to calculate the tax figures for tax exclusive case, select the 'Tax Exclusive' radio button at the top.
- Once you have entered the values for the required fields, and selected the required option for tax calculation, next you have to click on the Calculate button. You'll get the Sales tax figures for the entered input values.
- If you want to calculate the tax figures for the alternate case, for instance, previously you calculated for tax exclusive case and now you want to calculate for the other one or vice versa, then you just have to select the respective radio button and then click on the Calculate button again to reevaluate the figures for this new case.
- If you wish to change the values and calculate for another scenario, you can do so by clicking firstly on the Reset button, it will clear all the fields. Then you can repeat the same procedure to get the new tax figures.
What Sales tax figures you'll get?
Upon clicking the Calculate button after entering the Amount, Sales tax Rate per year, and selecting the calculation method, a new table will appear with the figures for Sales tax. It includes your Net Amount (excluding tax), Sales Tax amount (as per tax rate), and the Gross Amount (including tax), calculated for your entered values. For the 'Tax Exclusive' case, the net amount will be the same as the amount you entered, while the gross amount will be calculated by adding the tax amount to the net amount. For the 'Tax Inclusive' case, the gross amount will be the same as the amount you entered, while the net amount will be calculated by subtracting the tax amount from the gross amount.
Here are some common questions that you may have about our Sales Tax Calculator.
Q: How is Sales Tax Calculated for the tax exclusive case?
A: Sales Tax for the tax exclusive case is calculated using this simple formula: Sales tax = Net amount x (sales tax percent/100)
Q: How is Sales Tax Calculated for the tax inclusive case?
A: Firstly, the net amount (excluding tax) is calculated as: Net amount = Gross amount / ((sales tax percent/100) + 1)
Then, the sales tax can be calculated as: Sales tax = Gross amount - Net amount
Q: Is tax levied on each item or on the total?
A: Sales taxes are levied on the total sale prices of taxable goods. If you buy numerous things at once, the tax is calculated on the total sale rather than on each item separately.
Q: What is the difference between a net and a gross amount?
A: Gross amount refers to the complete or entire amount, which in this case refers to the amount including tax. Whereas net amount refers to what remains after certain deductions are made from the total. i.e. excluding the tax.
Why should you use our tool?
Our Sales Tax Calculator tool has been created to make your life easier. In a matter of milliseconds, our tool will calculate the Net and Gross amounts on the Sales Tax imposed according to your Sales tax rate. You can also use the sample values if you are not sure about how the tool would work in the beginning. By using our tool, you don't need the assistance of a specialist to do all the tax calculations. Not only this, but our tool is absolutely free and does not demand creating an account. We have covered your possible questions regarding the tool as well, so you get complete guidance related to the tool.