Business & Commerce
Basic

Sales Tax

The amount payable once a sales-tax or VAT rate is added to the price.

Formula

Total=Price×(1+t)Total = Price \times (1 + t)

Variables

TotalAmount payable
PricePre-tax price
tTax rate (decimal)

Example

$50 with 8% tax: 50×1.08 = $54

Did You Know?

VAT is collected at each production stage, while a sales tax is charged only once at final sale.

taxvatretail