Sales Tax Formula 2474Ef
1. The problem is to find the formula to calculate sales tax.
2. Sales tax is a percentage of the price of an item that is added to the original price.
3. The formula to calculate sales tax is:
$$\text{Sales Tax} = \text{Price} \times \frac{\text{Tax Rate}}{100}$$
4. Here, \text{Price} is the original cost of the item, and \text{Tax Rate} is the sales tax percentage.
5. To find the total price including tax, use:
$$\text{Total Price} = \text{Price} + \text{Sales Tax} = \text{Price} \times \left(1 + \frac{\text{Tax Rate}}{100}\right)$$
6. Important rules:
- Always convert the tax rate percentage to a decimal by dividing by 100.
- Multiply the price by this decimal to get the sales tax amount.
- Add the sales tax to the original price to get the total cost.
This formula helps you calculate how much extra you pay due to sales tax.