Sales Tax Calculator

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What is Sales Tax?

A sales tax is a tax paid to a governing body for the sales of certain goods and services. Usually, laws allow the seller to collect funds for the tax from the consumer at the point of purchase. When a tax on goods or services is paid to a governing body directly by a consumer, it is usually called a use tax. Often laws provide for the exemption of certain goods or services from sales and use tax.

This calculates a simple single sales tax and a total based on the entered tax percentage.

Net Price is the tag price or list price before any sales taxes are applied.

Total Price is the final amount paid including sales tax.

Sales Tax Calculations

• Sales Tax Amount = Net Price x (Sales Tax Percentage / 100)
• Total Price = Net Price + Sales Tax Amount

In the United States, Value added tax (VAT is used to charge on all sales, thus avoiding the need for a system of resale certificates. Tax cascading is avoided by applying the tax only to the difference (“value-added”) between the price paid by the first purchaser and the price paid by each subsequent purchaser of the same item.

Canada uses a value-added federal Goods and Services Tax (GST) with a rate of 5 percent, effective since January 1, 2008. Every province in Canada except Alberta has either a Provincial Sales Tax (PST) or the Harmonized Sales Tax (HST), which is a single, blended combination of the GST and PST.