How to Add Sales Tax to Prices in Excel

Tax only the taxable lines on a sporting-goods invoice, total it, and back the tax out of a tax-inclusive price.

You will learn to

• Calculate tax on taxable items only
• Build an invoice total
• Back out the pre-tax price from a tax-inclusive amount

How it works

To add sales tax, multiply the taxable amount by the rate: =ROUND(SUMIF(C2:C5,"Yes",B2:B5)*G2,2) taxes only the lines marked taxable and rounds to the cent, as a till would. The invoice total is the sum of all lines plus that tax.

To remove tax from a tax-inclusive price, divide — don’t subtract a percentage. Price ÷ (1 + rate) gives the pre-tax amount: $64.95 ÷ 1.0825 = $60.00. Subtracting 8.25% would wrongly give $59.59.

=ROUND(SUMIF(C2:C5,"Yes",B2:B5)*G2,2)