How do you estimate sales tax on a car?

Though tax rates vary by state and city, the formula to calculate your vehicle tax is: purchase price times the sales tax percentage.

1. How do you calculate sales tax on a car?
2. How would you estimate the amount of sales tax?

How do you calculate sales tax on a car?

To calculate the sales tax on your vehicle, find the total sales tax fee for the city. The minimum is 7.25%. Multiply the vehicle price (before trade-in or incentives) by the sales tax fee. For example, imagine you are purchasing a vehicle for $20,000 with the state sales tax of 7.25%.

How would you estimate the amount of sales tax?

The formula for calculating the sales tax on a good or service is: selling price x sales tax rate, and when calculating the total cost of a purchase, the formula is: total sale amount = selling price + sales tax.