How much tax do I pay on purchases?

The tax rate charged will vary across California and depends upon where the item is bought, or will be used. The statewide sales and use tax rate in California is currently 7.25 percent, but in many areas, voters approved district taxes to fund local or regional projects and services.

How do you calculate state tax on purchases?

If you know the state sales tax rate, you can calculate the retail price from the total price.

1. Divide the state sales tax rate by 100 to convert it to a decimal.
2. Add 1 to the state sales tax rate as a decimal.
3. Divide the result by the total price to find the retail price.

What purchases are subject to Massachusetts use tax?

Massachusetts presumes that any tangible personal property purchased outside of Massachusetts and brought into the state within 6 months is for use, storage or consumption and is subject to the use tax. This presumption may be challenged by the purchaser.

What is the tax on a $50 purchase?

A tax of 7.5 percent was added to the product to make it equal to 53.75.

Do I pay sales tax on car bought out of state?

According to Carfax, you should pay sales tax to the state where you will register your vehicle (where you live), not to the state where you bought the vehicle. However, you may need to obtain a temporary registration card from the state where you purchased the car if you plan to drive it back to your home state.

How do you calculate sales tax on a purchase?

Sales Tax Calculations:

1. Sales Tax Amount = Net Price x (Sales Tax Percentage / 100)
2. Total Price = Net Price + Sales Tax Amount.

What are use tax purchases?

Use tax is a sales tax on purchases made outside one’s state of residence for taxable items that will be used, stored or consumed in one’s state of residence and on which no tax was collected in the state of purchase.

What purchases are subject to use tax?

Generally, if the item would have been taxable if purchased from a California retailer, it is subject to use tax. For example, purchases of clothing, appliances, toys, books, furniture, or CDs would be subject to use tax.

How much is $60 taxed?

A tax of 7.5 percent was added to the product to make it equal to 64.5. So, divide 7.5 by 100 to get 0.075. Divide the final amount by the value above to find the original amount before the tax was added. In this example: 64.5 / 1.075 = 60.

What would tax be on $800?

A tax of 7.5 percent was added to the product to make it equal to 860. So, divide 7.5 by 100 to get 0.075.

Do you have to pay taxes on out of state purchases?

It is your responsibility to report and pay use tax for purchases you make from out-of-state companies that don’t charge you tax. Generally, the same types of items that are subject to sales tax are subject to use tax.

What is the state sales tax in Massachusetts?

Massachusetts Local Sales Taxes. Massachusetts does not allow local jurisdictions like cities or counties to collect a local sales tax. The Massachusetts state sales tax of 6.25% is applicable statewide. You can view the sales tax rates for various cities in Massachusetts here.

Do you pay sales tax on prescription drugs in Massachusetts?

Massachusetts doesn’t collect sales tax on purchases of most prescription drugs and groceries. Prepared Food is subject to special sales tax rates under Massachusetts law. In most states, necessities such as groceries, clothes, and drugs are exempted from the sales tax or charged at a lower sales tax rate.

What kind of sales tax do you pay on clothing in Massachusetts?

Business purchases for resale are also exempt with the use of a Sales Tax Resale Certificate (Form ST-4) completed by the buyer. Clothing has a higher tax rate when you spend over $175and a special local sales tax of 0.75% may apply to meals purchased in some localities.

How much tax do you pay in Boston MA?

In addition to the state excise, Massachusetts cities and towns are permitted to charge a local room occupancy excise tax up to 6% (6.5% for Boston). Monthly, on or before the 20th day following the close of the tax period.