How to calculate sales tax?

To calculate sales tax, multiply the price of the item by the sales tax rate (expressed as a decimal). Add the resulting tax amount to the sticker price to find the total you must pay.

Formula

Tax = Price × (Tax Rate % ÷ 100) Total = Price + Tax

Worked Example

Price is $50, Tax Rate is 8%.

1. Decimal: 8 ÷ 100 = 0.08
2. Tax: $50 × 0.08 = $4
3. Total: $50 + $4 = $54

Result: You pay $54 total.