Sales Tax Calculator allows you to calculate the sales tax you need to pay for an amount given the sales tax percentage
- Total Tax:
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- Total Cost:
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- What does Sales Tax mean?
- Sales tax is the money paid to a government for the sales of some goods and services. In some countries, sales tax is referred to as value-added tax or (VAT).
- Importance of Sales Tax
- Sales tax is important to each state as it is a mechanism used to generate income for the state. At the same time, it tracks sales for each business.
- Formula
Sales Tax = Cost Price x Rate
- Example
Suppose you buy a car for 20,000 dollars and pay 5% in as tax. Therefore:-
- Tax = 20,000 x 5% = 20,000 times 0.05
- Tax = 20,000 x 0.05 = 1,000 dollars
And the cost with tax is 20,000 + 1000 = 21,000
History
- May 5, 2018
- Tool Launched
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