How to use it
- Use the formula below with your own figures.
The formula
Total = price × (1 + tax rate).
Worked example
$50 at 8% tax is $54 total.
Frequently asked questions
Is rate the same everywhere?
No — it varies by state or region.
Included or added?
Sales tax is usually added at checkout.
Tips
- Know your marginal vs effective rate.
- Set money aside as you earn if tax isn't withheld.
- Keep receipts for anything deductible.
Key terms
- Marginal rate
- The rate on your top slice of income.
- Effective rate
- Your overall average tax rate.
- Deduction
- An amount subtracted from taxable income.