Sales Tax Calculator
Figuring out sales tax is actually very simple if you know how. Most businesses use some form of sales tax calculator as sales tax is required to be charged to customers for most types of goods and in most states. These calculators are usually pre-programmed with the sales tax percentage to enable the sales tax to be calculated with the simple push of a button. The sales tax percentage, as well as which goods are actually taxed, varies from state to state.
Some states have sales tax on food; others don’t tax food but they do tax everything else. Prices that you see at stores may or may not already include the sales tax. For instance, if you buy clothing, the sales tax is generally not included, however, if you buy gasoline, you probably know that the sales tax is already added into the price listed on the pump.
Calculating Sales Tax
Sales tax is calculated by taking the total price of the product and multiplying by the sales tax percentage. You then take the results and add it to the product price to get the total price for the product. For example, consider a product that costs $1.00 and is purchased in a state with 6% sales tax. You would take $1.00 and multiply by 0.06 to come up with $0.06. You would then would add the $0.06 to the $1.00, which would be $1.06, which would be the total price for the product.
This site provides an online sales tax calculator, that can be used in two different ways. On the first tab, you can enter the total price of you purchase, and then select which state you are purchasing those goods in. The calculator will inform you of the sales tax based on the sales tax percentage for that state. On the second tab of the sales tax calculator, you can manually enter the sales tax percentage to come up with the correct results. Both tabs use the same formula, but if you do not know what the sales tax percentage is for your state, you can simply select the state you live in to automatically calculate the sales tax.
Sales Tax Differences With Different States
It is very important that you select the correct state because every state has a different sales tax percentage. Some states tax everything that you buy. Others don’t tax food. Some states require merchants to collect sales tax for online sales if they have part of their company or an affiliate in that state. The items that are taxed vary widely. For instance, Michigan sales tax is 6%. They do not tax food that you buy in a grocery store. But they do tax food from a restaurant, such as McDonalds or Pizza Hut. If you are renting a hotel room, you are also charged sales tax.
Connecticut also charges a 6% sales tax, however the Connecticut law reads that food products for human consumption are exempt from sales tax, but there are exceptions to this. Beer, wine and liquor are taxed. Beverages, such as soft drinks, that are dispensed from a fountain or a bar are also taxable. Items sold in vending machines are exempt from sales tax. Anything else that is not edible has sales tax on it. Some candy is also taxable. There is also tax on meals that you eat at restaurants or any prepared meal.
It depends on what state you are in as to how much sales tax is applied and what it is applied to. If you are selling things or buying things in several different states, you should be aware of the sales tax laws.
Cash registers can generally be programmed to account for these discrepancies in the sales tax law. Some cash registers require you to press one subtotal item if the good is taxable and another if the good is not. Some newer systems know if sales tax needs to be charged or not based on the SKU of the item.
It is important to know the individual sales tax calculator laws for the state you live or work in. States change the amount of sales tax there is on items from time to time, so it is important to keep up to date. Try our Sales Tax Calculator today!