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Sales Tax Formulas for Vacation Rentals
How to calculate your base rate or sales tax amount.
Formula to find base rental rate
rental base rate = (after tax total) / (1 + tax rate)
To calculate the base rental rate if the total is $985.50 and the sales tax rate is 9.5%:
base rental rate = (after tax total) / (1 + tax rate)
base rental rate = (985.50) / (1 + .095)
base rental rate = (985.50) / (1.095)
base rental rate = $900
Formula to find tax amount
tax amount = (tax rate * after tax total) / (1 + tax rate)
To calculate the sales tax amount if the total is $985.50 and the sales tax rate is 9.5%:
tax amount = (tax rate * after tax total) / (1 + tax rate)
tax amount = (.095 * 985.50) / (1 + .095)
tax amount = 93.6225/1.095
tax amount = $85.50
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