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How to calculate sales tax in Excel and Google Sheets
Topic:Finance basicsExcel & Google Sheets
=A2*B2✓
Verified example
Computed by a real spreadsheet engine on the sample data below.
| Pre-Tax Price | Tax Rate | Tax Amount |
| 100 | 0.08 | |
| 250 | 0.1 | |
| 50 | 0.07 | |
| 1200 | 0.09 |
=A2*B2→8
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Step by step
- 1Set up two columns: Pre-Tax Price (A) and Tax Rate as a decimal (B, e.g., 0.08 for 8%).
- 2In the Tax Amount column, enter =A2*B2 to calculate the tax amount.
- 3In a Total Price column, enter =A2*(1+B2) to get the pre-tax price plus sales tax in one step.
Tips
- To back-calculate the pre-tax price from a tax-inclusive total, divide by (1 + rate): =A2/(1+B2).
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Frequently asked
How do I calculate the tax from a total that already includes tax?
Use =A2-(A2/(1+B2)) where A2 is the tax-inclusive price and B2 is the tax rate.
Can I apply different tax rates to different items?
Yes. Put the tax rate in a column next to each item and multiply: =A2*B2. This automatically applies each item's own rate.
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