A Sales Tax Calculator is a tool used to calculate the amount of sales tax that is due on a particular purchase. Sales Tax is a type of tax that is applied to the sale of goods and services, and is usually collected by the seller. The amount of sales tax varies by state and jurisdiction and is usually a percentage of the purchase price.
Sales tax is usually made up of two components: base tax and local tax. Base tax is a standard rate that is applied to all goods and services in a state or jurisdiction, while local tax is an additional amount that is collected by local governments. In some states, local governments are allowed to set their own rate of local sales tax, while other states have a fixed rate that is applied throughout the entire state.
To calculate sales tax, the applicable sales tax rate is multiplied by the net price of the goods or services. For example:
Sales tax rate: 5%
Net price of a purchase: $100
Tax amount: Net price of a purchase x Sales tax rate
Gross price: Tax amount + Net price of a purchase
Another example of a Sales Tax Calculator is one that can be used to calculate the amount of sales tax due on a purchase that includes items from multiple jurisdictions with different sales tax rates. In this case, the calculator would add up the sales tax rate for each jurisdiction and then multiply it with the net price to calculate the total amount of sales tax due.
