Sales tax is a consumption tax imposed by the government on the sale of goods and services. It is calculated as a percentage of the purchase price and is typically added to the final bill. The rate and regulations vary by jurisdiction, making it essential to accurately calculate the sales tax to ensure compliance and correct billing.
How to Use the Sales Tax Calculator
Below is an example of how your sales tax calculator in Excel should look. This simple tool will help you calculate the total cost of a purchase, including the sales tax.
Sales Tax Calculator Table
Exercise
- Calculate Tax Amount
- Calculate Total Cost
- Total Values
Solution
- In cell D2, enter the formula
=B2*C2/100and drag it down to calculate the tax for each item. - In cell E2, enter the formula
=B2+D2and drag it down to calculate the total cost including tax. - At the bottom, use the
SUMfunction to calculate the total tax and total cost