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Usually the tax is added to the original price, so you can write an equation such as (assuming a 5% tax):
p2 = p1 + 0.05 p1
(where p1 is the price before the tax, and p2 is the price after the tax). This can be simplified (applying basic algebra) to:
p2 = 1.05 p1
Solving for the original price:
p1 = p2 / 1.05
In other words: divide the price after tax by 1.05. If the tax is any other percentage, adjust the factor; for example, for a 7% tax divide by 1.07, for an 8.5% tax divide by 1.085, etc. Note that the factor by which you divide is simply 1 + (tax rate) / 100.
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If you sold an item for 20.00 and included sales tax and your sales tax rate is 7.3 what was the item price before sales tax?
The easiest way to understand the answer is to turn it around. If you wanted to calculate the item price plus tax, you would multiply the item price by 1.073. So, to back up to the item price from the item price plus tax, divide the item price plus tax by 1.073. $20.00 / 1.073 = item price before sales tax.
How do you calculate a 7 percent sales tax?
Take your order price times .007. That's the sales tax for that order. but take tax before shipping cost.
How do you add tax to a price?
If the tax is 10 percent and the price of the item is $1.00 then you simply calculate 10% of 1.0. = 10 cents and add it to the original price.You would charge the person $1.10 (including tax).The simple way to calculate the final price mathematically is to express the percent as a decimal and add 1 to it. Then multiply the price by this number.I.e If the tax is 5.6% you would express this a 0.056 + 1 = 1.056 and multiple the pre tax price by this number.
Why must you first calculate a discount price on an item before calculating the total sales tax on the item?
The discount must be calculated first to get the base price of the item, then the tax percentage would be taken into consideration, otherwise you would be charging additional tax on an item which should be discounted in the first place. If you were to calculate tax first then the discount price, your total would be incorrect.
The final cost of an item was 50 This included 6 percent sales tax What was the price of the item before tax?
The total tax is $2.83 and the price before tax was $47.17.
