Guide · Sales tax

How sales tax is calculated

Educational guide · Updated · About 5 min read

Sales tax is usually a percent of the taxable pretax price. You multiply the pretax amount by the rate, then add the tax to get the amount due at checkout under a simple model.

Core idea

Tax = pretax × (rate ÷ 100)
Total = pretax + tax

Sample

$100 · 8% → tax $8.00, total $108.00. Open sample

Related

Frequently asked questions

How is sales tax calculated?

Multiply the pretax amount by the tax rate percent, then add tax to pretax for the total.

Sample 8% on $100?

Tax about $8.00; total about $108.00.

Related tool

Estimate sales tax free

Pretax, tax, and total.

Open sales tax calculator

Sources linked above include U.S. government materials (for example CFPB, FDIC, NCUA, BLS, IRS) where noted. Sample math uses only labeled Nestfigure assumptions—not bank quotes, job offers, or personalized advice. Last reviewed: August 9, 2026.

YMYL notice: This site is for education only. It is not financial, tax, or investment advice. Nestfigure is not a bank, credit union, broker, investment adviser, or fiduciary. Product terms, rates, and penalties vary—always read your institution’s disclosures before acting. Calculator results are mathematical estimates, not bank quotes.