How to Mentally Figure Sales Tax
Instructions
1Know what your local sales tax is. If you live an area that has both state and other local sales tax, add them together to get the appropriate amount.
2
Take the rate and first mentally multiply it times the number of dollars that you have purchased. If the rate is 7% and your purchase is $1 the amount that you will have to pay is 7 cents. For every dollar that you purchase with a sales tax of 7% you need to add this amount. If your purchase is $10 then add 70 cents. If you're living in a state with a 5% sales tax, either multiply by .05 or 5 cents on the dollar or multiply by 10 cents and divide by 2 ($10 X.10=1.00/2=.50).
3
Adjust for the dollars in between. Most taxes will have an equal divisor. If the amount is 5%, then every 20 cents another penny is added. For that 7% rate the amount is 100/7=14 or every 14 cents another penny is added.
4
Add the dollar amount and the cents amount together. If your purchase is $10.42 you have 50 cents for the first $10 in a 5% tax area and since there is 42 cents we would add another 3 cents or 1 cent for the start of every 20 cents, to that for a total of 53 cents.
5
Break down larger amounts to multiply. If a purchase is $2350 and your locality charges a 5% tax, figure $100 for the $2000, $15 for the $300 amount, $2.50 for the $50. Add the $100+15+2.50 for a total of $117.50.