As the name implies, **sales tax** is a tax added to the sale of goods.

For example, suppose the price of a given product is **$10**.

If the sales tax rate is **20**%, then the final price of the product after sales tax is added is:

Price with sales tax = $10 * (1 + 0.20) = $10 * 1.2 = **$12**

You can use the following formulas to add or remove sales tax from prices in Excel:

**Formula 1: Add Sales Tax to Price**

=B2*(1+$F$1)

**Formula 2: Remove Sales Tax from Price**

=B2/(1+$F$1)

Both formulas assume the price of a good is located in cell **B2** and the sales tax rate is located in cell **F1**.

The following examples show how to use each formula in practice.

**Example 1: Add Sales Tax to Prices in Excel**

Suppose we have the following list of products with prices in Excel:

We can type the following formula into cell **C2** to add a sales tax rate of 20% to the price in cell **B2**:

=B2*(1+$F$1)

We can then click and drag this formula down to each remaining cell in column C:

Column C now shows each price in column B with the sales tax added to it.

For example:

- A $10 item with a 20% sales tax rate becomes
**$12**. - A $15 item with a 20% sales tax rate becomes
**$18**. - A $20 item with a 20% sales tax rate becomes
**$24**.

And so on.

**Example 2: Remove Sales Tax from Prices in Excel**

Suppose we have the following list of products with prices that already have sales tax added to them in Excel:

We can type the following formula into cell **C2** to remove a sales tax rate of 20% from the price in cell **B2** to find the price before the sales tax was added:

=B2/(1+$F$1)

We can then click and drag this formula down to each remaining cell in column C:

Column C now shows each price in column B with the sales tax removed from it.

For example:

- A $12 item with a 20% sales tax rate removed becomes
**$10**. - A $18 item with a 20% sales tax rate removed becomes
**$15**. - A $24 item with a 20% sales tax rate removed becomes
**$20**.

And so on.

**Additional Resources**

The following tutorials explain how to perform other common tasks in Excel:

How to Find the Top 10% of Values in an Excel Column

How to Calculate Cumulative Percentage in Excel

How to Multiply Column by a Percentage in Excel