How to calculate sales tax in Excel?

When we go shopping, we always make sure to pay the sales tax, with the exception of when we buy duty-free products. But do you have any idea how much in sales tax you've already paid?

There may be times when you are provided with a price that does not include the applicable taxes. Under these conditions, all that is required to determine the amount of sales tax owed is to multiply the selling price by the tax rate that is in effect.

Step 1

Here, you get your pay check and are required to pay a tax to the government equal to thirty percent of it. After that, you compute the amount of tax that you owe by comparing the "price exclusive of tax" and the "tax-inclusive price"

Step 2

There is a possibility that you will be able to negotiate the price exclusive of tax Under these conditions, calculating the amount of sales tax that must be paid requires doing nothing more complicated than multiplying the purchase price by the tax rate that is in effect.

=B1*B2

B1 is indeed the cost excluding tax, as well as B2 is the tax rate for that price. after that, make sure you hit the Enter key.

Step 3

You will find, for your convenience, the " price exclusive of tax " listed in this section.

Step 4

To determine the "price inclusive of tax", choose the cell in which you will insert the sales tax, then enter the formula.

=B1-B1/(1+B2)

B1 is indeed the cost excluding tax, as well as B2 is the tax rate for that price. after that, make sure you hit the Enter key.

Step 5

You will find, for your convenience, the " tax-inclusive price " listed in this section.

After this point, acquiring the sales tax shouldn't give you any trouble at all any more.

Conclusion

In this tutorial, we used a simple example to demonstrate how you can calculate sales tax in Excel.