While browsing in your favorite department store, the listed prices are not actually telling you the total cost. Most of the city and state collect taxes, which are priced at the cost of a cold jacket or a great piece of jewelry in the past. Depending on where you can make sales, it is important that you can quickly and easily find out how much you will be charged at checkout. Follow one of these easy ways to find your last tab.
Calculating the Exact Amount of Sales Tax
Determine the sales tax rate in your location.
You can view it online or ask the sales associate what it will be. While the states usually set a statewide sales tax, some municipalities add their own taxes on it. This means that the rate of sale tax can vary significantly between different cities or counties.
Sales tax is not levied on all items you have purchased. Check online to see what’s tax in your area.
Change the sales tax percentage to a decimal shape. Take the percentage number and then imagine the decimal point. Now move that decimal point to the left, by which you will equal the percentage to the decimal by sales. For example, if the sales tax rate is 8%, the decimal figure will be 0.88.
In the previous step, multiply the price of items with the decimals shaped by you. This calculation will give you the tax amount for your purchase. For example, if the item you want to buy is $ 20, then multiply 20 times 0.80 and you get 1.6. This means that you have to pay $ 1.60 in sales tax.
Add tax amount to the price you listed. This will give you the total cost that you have to pay in the register. Using the same example again, if you will be charged $ 1.60 for $ 20 item, then add 1.6 to 20 for a total of $ 21.60.
Estimating the Amount of Sales Tax
Make sales tax rate up to 10%. No matter what the actual tax rate is, it will make your multiplication very simple. The aim of estimating sales tax is to make mathematics easy to do in your head. Do not be disturbed by the exact amount, it is enough enough to guess that you have enough money you want to buy. Using an estimate of 10% would mean that, in most cases, you are making goals, making more than your estimate will actually pay you.
If you are actually lowering tax rates, be sure to remember that your estimation will be slightly lower, as you will need to pay.
Move the decimal point to the left in the cost of your item. This will give you a good, quick guess how much you will be able to pay. There is no need for complex calculation, just move the decimal, and this will give you 10% of the cost on the tag.
In doing so, you actually multiply the cost of your item by 10%, which is clearly really simple! For example, .10 times $ 20 is equal to $ 2.
Add estimated tax in item cost. Because we are round, your guess probably will be more than actually taxed, but you will know that you can pay the total cost. To use our example once more from the previous step, makes an estimated total cost, including $ 20 plus $ 2 tax.