# Thread: Calculating Sales Tax (Excel All versions)

1. ## Calculating Sales Tax (Excel All versions)

A new day - a new question, but this is a mathematical one.
I know how to calculate the sales tax on on item. However how would I go backwards that is from the total break out the amount of sales tax. The following formula:
=Total*SalesTax
is in error, since the tax is being calculated on the wrong amount.

Thanks
TC

2. ## Re: Calculating Sales Tax (Excel All versions)

An example: if sales tax is 6%, the total is 106% of the amount w/o tax. So the tax amount is 6/106 of the total.

When you enter 6% in a cell, Excel stores 0.06 and displays 6%

If the tax percentage is entered that way: TaxAmount = SalesTax/(1+SalesTax)*Total

Or, if tax percentage is entered as 6 (without %): TaxAmount = SalesTax/(100+SalesTax)*Total

3. ## Re: Calculating Sales Tax (Excel All versions)

To get the pre-tax value you divide by (1+ the tax pecentage). To get the tax take the difference, so tax at 15% would give:-

115 -(115/1.15) = 15

HTH

Peter

4. ## Re: Calculating Sales Tax (Excel All versions)

I'm not "getting" this - could you explain another way?

Thanks

5. ## Re: Calculating Sales Tax (Excel All versions)

Got it!

Thanks

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