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When browsing in your favorite department store, the prices listed aren't actually telling you the total cost. Most cities and states charge a sales tax, driving the price of a cool new jacket or a fabulous piece of jewelry past what is listed on the tag. Depending on where you are sales tax may differ, so it's important to be able to quickly and easily figure out how much you'll be charged at checkout. Follow one of these easy methods to figure out your final tab.

Method 1
Method 1 of 2:

Calculating the Exact Amount of Sales Tax

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  1. You can look it up online or ask a sales associate what it will be. While states usually set a statewide sales tax, some municipalities add their own taxes on top of that. This means that the sales tax rate can vary drastically when moving between different cities or counties.[1]
    • Sales tax is not charged on all items you buy. Check online to see what is, and is not, taxed in your area.
  2. Take the percent number and imagine a decimal point after it. Now move that decimal point two spaces to the left, giving you the decimal equivalent of the sales tax percentage. For example, if the sales tax rate is 8%, the decimal figure will be .08.[2]
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  3. This calculation will give you the amount of tax that will be charged for your purchase. For example, if the item you want to buy is $20, multiply 20 times .08 and you get 1.6. That means you will have to pay $1.60 in sales tax.[3]
  4. This will give you the total price you will have to pay at the register. Using our same example once again, if you will be charged $1.60 on your $20 item, simply add 1.6 to 20, for a total of $21.60.
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Method 2
Method 2 of 2:

Estimating the Amount of Sales Tax

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  1. No matter what the actual tax rate is, this will make your multiplication much simpler. The goal in estimating sales tax is to make the math simple enough to do in your head. Don't bother with exact amounts, just estimate well enough to make sure you have enough money to pay for what you want to buy. By using an estimate of 10% it will mean that, in most cases, you are rounding up, making your estimate more than you will actually pay.[4]
    • If you are actually rounding the tax rate down, make sure to remember that your estimate will be a little bit less than you will need to pay.
  2. This will give you a good, quick estimate of how much tax you will be charged. No need for complicated calculations, just move the decimal over and that will give you 10% of the cost on the tag.[5]
    • In doing this, you are actually multiplying the cost of your item by the decimal equivalent of 10%, which is obviously really easy! For example, .10 times $20 equals $2.
  3. Because we rounded up, your estimate will probably be higher than the tax actually charged, but you will know you can afford to pay the total cost. To use our example from the previous step one more time, $20 plus $2 makes the estimated total cost including tax $22.
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  • Question
    What's the tax on $34 with sales tax being 8.75%?
    Community Answer
    Community Answer
    About $37.06. I rounded the .75 up because that’s what they do in stores, so it's 9%.
  • Question
    What is the tax on 5.94 at 6%?
    Community Answer
    Community Answer
    The tax is (5.94)(.06) = 0.36.
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Tips

  • Native American people are exempt from having to pay sales tax.[6]
  • Only five states have no state sales tax. They are Alaska, Montana, New Hampshire, Delaware, and Oregon.[7]
  • You can multiply the dollar amount by 1.X, where X represents the sales tax after dividing by 100. For example, if something is $20 and the sales tax is 7% you would multiply $20 times 1.07 and you would pay $21.40. Or add 7 cents for every dollar.
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About This Article

Alan Mehdiani, CPA
Co-authored by:
Certified Public Accountant
This article was co-authored by Alan Mehdiani, CPA. Alan Mehdiani is a certified public accountant and the CEO of Mehdiani Financial Management, based in the Los Angeles, California metro area. With over 15 years of experience in financial and wealth management, Alan has experience in accounting and taxation, business formation, financial planning and investments, and real estate and business sales. Alan holds a BA in Business Economics and Accounting from the University of California, Los Angeles. This article has been viewed 128,303 times.
6 votes - 53%
Co-authors: 14
Updated: January 23, 2023
Views: 128,303
Categories: Featured Articles | Shopping | Taxes
Article SummaryX

To add sales tax, start by determining the sales tax rate in your city and converting it into a decimal. If, for example, your city’s tax rate is 8%, you would convert it to 0.08. Next. multiply the decimal by the price of the item you want to buy in order to calculate your sales tax. For example, if your item is $20, multiply 20 by 0.08 to get $1.60, which is the sales tax. Finally, add $1.60 to $20 to get $21.60, which is the total price you would need to pay at the register. To learn more, like how to estimate your sales tax when you don’t have a calculator, read on!

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  • Reanne Lamberth

    Reanne Lamberth

    Mar 31, 2020

    "I understood because i'm doing sales tax in school and I didn't know how to do it. And I tried to look at..." more
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