Formula:
Sales Tax Calculation Formulas:
Scenario 1: Calculating Tax and Total Price when Original Price EXCLUDES Tax
- Tax Amount = Original Price × (Tax Rate / 100)
- Total Price = Original Price + Tax Amount
Scenario 2: Calculating Original Price and Tax Amount when Total Price INCLUDES Tax
- Original Price (Excl. Tax) = Total Price / (1 + (Tax Rate / 100))
- Tax Amount = Total Price - Original Price (Excl. Tax)
Where:
- Original Price = The price of an item before any tax is applied.
- Total Price = The final price of an item including tax.
- Tax Rate = The percentage rate of the sales or consumption tax (e.g., 8.25 for 8.25%).