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Financial

Sales Tax Calculator

Calculate the sales tax amount and total price including tax. Works for any tax rate and handles both adding tax and extracting tax from a total.

Excel Formula

=A2*B2

Step-by-Step Explanation

1

A2 is the pre-tax price

2

B2 is the tax rate (e.g., 0.08 for 8%)

3

The result is the tax amount only

4

Add to original price for total: =A2*(1+B2)

5

To extract tax from a total: =A2-A2/(1+B2)

Example

Price (A)Tax Rate (B)Tax Amount (C)Total (D)
$99.998.5%$8.50$108.49
$249.996.0%$15.00$264.99

Result: Tax: =A2*B2 → $8.50 | Total: =A2*(1+B2) → $108.49

Common Variations

Total with tax

=A2*(1+B2)

Price including tax

Extract tax from total

=A2-A2/(1+B2)

Find tax when you have the total

Pre-tax from total

=A2/(1+B2)

Find original price from tax-inclusive total

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