Tax
First you calculate the amount of the tax on the item. Then you add together the original cost of the item and the tax.
The easiest way to understand the answer is to turn it around. If you wanted to calculate the item price plus tax, you would multiply the item price by 1.073. So, to back up to the item price from the item price plus tax, divide the item price plus tax by 1.073. $20.00 / 1.073 = item price before sales tax.
When tax is already included in the price of an item such as gas or tobacco, it is referred to as an "inclusive tax." This means the tax amount is embedded in the total price consumers pay at the point of sale, rather than being added on separately. In some contexts, it may also be called "excise tax," which is a specific type of tax imposed on certain goods.
The tax of an item is the money that goes to the poor. Depending on where you live, if your government or president is rich, then the tax amount is bigger. If the government is poor, than there is a low amount of tax on an item.
indirect tax A+
An excise tax or sales tax is calculated on a per-item basis
An excise tax or sales tax is calculated on a per-item basis
131.3 x 10 / 101 = 13
The total tax is $1.06 and the total price with tax is $14.37
To determine the total cost of an item including tax, first convert the tax rate from a percentage to a decimal by dividing it by 100. Then, multiply the item's price by this decimal to calculate the tax amount. Finally, add the tax amount to the original price of the item to find the total cost. The formula can be summarized as: Total Cost = Price + (Price × Tax Rate).
The total tax is $2.83 and the price before tax was $47.17.
Sales tax varies from place to place. You need to identify what the sales tax is in the area where you are selling the item