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NGSales tax calculator
Our sales tax calculator can help you determine the the amount of sales tax that should be added to a purchase.
Page written by Ian Hawkins. Last reviewed on July 9, 2024. Next review due April 1, 2025.
Our sales tax calculator can help you determine the the amount of sales tax that should be added to a purchase.
Page written by Ian Hawkins. Last reviewed on July 9, 2024. Next review due April 1, 2025.
This calculator is intended for illustration purposes only and exact payment terms should be agreed with a lender before taking out a loan.
Using Swoop’s sales tax calculator is easy.
The calculator will instantly show you the amount of sales tax you’ll need to pay and the total cost including tax. It’s an easy, quick way to make sure you know exactly what you’ll be spending, helping you budget smarter and avoid any surprise costs at the till.
Sales tax is a type of consumption tax imposed by governments on the sale of goods and services. It’s typically a percentage of the purchase price and is collected by the seller at the point of sale. The seller then remits the collected tax to the government.
The purpose of sales tax is to generate revenue for government agencies. This revenue is used to fund public services such as education, healthcare, infrastructure, and various other government functions.
It’s important to note that sales tax rates and regulations can vary widely between different regions, states, and countries. In some places, sales tax may be a single, uniform rate applied to most goods and services. In others, there may be different rates for different types of items or exemptions for certain goods like groceries or medical supplies.
Here’s how you can quickly figure out the sales tax on your next purchase.
Step 1: Determine the sales tax rate: First, you need to know the sales tax rate for your province or territory. For example, if you’re shopping in Ontario, the HST (Harmonized Sales Tax) rate is 13%.
Step 2: Convert the percentage to a decimal: Turn that percentage into a decimal by dividing it by 100. So, 13% becomes 0.13.
Step 3: Calculate the sales tax: Now, multiply the price of your item by the sales tax rate (the decimal you just figured out). Let’s say you’re buying something for $50 and the sales tax rate is 13%:
Sales Tax=50×0.13=6.50. That means the sales tax on a $50 item would be $6.50.
Step 4: Calculate the total Cost: Add the sales tax to the original price to get the total cost. So, continuing with our example:
Total Cost=50+6.50=56.50. So, you’d pay a total of $56.50 for your $50 item including the sales tax.
Let’s say Sarah goes to a local electronics store to purchase a new laptop. The price of the laptop is $1,200, and the sales tax rate in her area is 7%.
Calculating sales tax: Sarah needs to calculate the sales tax on the laptop. She multiplies the price of the laptop by the sales tax rate to find the amount of sales tax. Sales tax = Price of laptop × Sales tax rate = $1,200 × 0.07 = $84
Total Cost: To find the total cost of the laptop including sales tax, Sarah adds the sales tax amount to the price of the laptop.
Total cost = Price of laptop + Sales tax = $1,200 + $84 = $1,284
So, Sarah pays a total of $1,284 for the laptop, including $84 in sales tax. The store will then remit the sales tax collected to the appropriate government authority.
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