Sales tax is usually the money that has to be paid to a state government for selling of any kind of services and goods. Mainly, the law is that a seller or service provider is responsible to collect the tax from buyers while he purchases a thing and submit it to the government. It is simple to define a sales tax. You will know the cost of a thing from a price tag, but what about the total value with the tax? It is the point when you need a sales tax calculator.
First you have to find out more about sales tax calculator, I should give you the complex picture to define a sales tax. In different states, the rate of tax is different. Even in five states, there is no sales tax! So, it is impossible to pay the real amount for something when you don’t use a sales tax calculator. Because maybe you are a resident of California, where the rate is 7%. But now you have moved or travelling to Virginia, where the rate is around 4%. Not only that. In Virginia, the sales tax rate may fluctuate in every city. So, finding a perfect and trouble-free sales tax calculator may be the answer to avoid the complications on sales tax.
It is necessary for most of selling places to file tax amounts to each goods or service, on which the sales tax is valid. This can be very complicated and time killing process for you, if you try it manually. But with the right software, it can be done in only a second. A sales tax calculator is not like an ordinary calculator with digits and scientific signs. The process is very simple. But keep in mind that you have to enter the tax rate in decimal form, not a fraction. Such as 7% becomes 0.07, 3.5% becomes 0.035, etc. You have to multiply the decimal figure of sales tax rates with the price of a product. The result will be the total payable tax for this. Then add the result to the price of the item, the outcome will be the total cost of the product. So the calculation for a 20$ item with 4.5% sales tax is, 20 (price of the item) *0.045 (sales tax rate) = 0.9 (payable sales tax). Then the real price will be (20+0.9) = 20.9$. In a sales tax calculator, the rate of tax for each state is mentioned below it. So, you don’t have to be tensed about finding the rate or fixing the real retail price.