The only thing you can be sure of when operating a business is you will have to pay taxes. Your income will be taxed and your sales will be taxed. One of the hardest parts about paying your taxes is just figuring out what you owe. Thankfully, there are formulas designed to help with this. For instance, if you know what your gross sales and tax rate are you can determine what the actual tax amount is.
Review the calculation for calculating sales tax. The calculation is: Gross Sales - Gross Sales divided by (1+ Tax Rate).
Determine your tax rate. This will depend on the state sales tax rate. Let's say your state's current tax rate is 5 percent.
Video of the Day
Calculate gross sales without tax. This equals your gross sales figure divided by 1+"tax rate". Let's say your sales were $10,000. Gross sales without tax equals: $10,500/1.05 or $10,000.
Subtract the gross sales without taxes from gross sales for the actual sales tax amount. The calculation is: $10,500 - $10,000 = $500.