How to add sales tax
Multiply the price by (1 + tax rate ÷ 100). $120 with 8.25% tax is 120 × 1.0825 = $129.9.
The tax itself is the price times the rate: 7% of $49.99 = $3.5.
Finding the price before tax
To remove tax from a total, divide by (1 + rate ÷ 100): $129.90 ÷ 1.0825 = $120. Smart mode does not understand this one yet; use the division above.
Worked examples
| Question | Calculation | Working | Result |
|---|---|---|---|
| Add 6% tax to 250 | Add X% to Y | 250 × 1.06 | 265 |
| $120 plus 8.25% sales tax | Add X% to Y | 120 × 1.0825 | 129.9 |
| Sales tax of 7% on 49.99 | What is X% of Y? | 7 × 49.99 ÷ 100 | 3.5 |
Frequently asked questions
Is taking 8% off the same as removing 8% tax?
No. Removing tax means dividing by 1.08; subtracting 8% from the total gives a slightly lower, wrong price.
Which rate should I use?
Your combined state and local rate. It varies by state, county and city, from 0% in a few states to above 9% in some cities.
How much is 6% tax on $250?
250 × 6 ÷ 100 = $15, for a total of $265.
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