I'm wondering how to calculate sales tax when this situation.

Item price is 14.97 and quantity is 7. Sales tax is 9%.

  1. 14.97 * 7 * 0.09 = 9.4311 = 9.43
  2. 14.97 * 0.09 = 1.3473, rounding up: 1.35 * 7 = 9.45

What's right?


You don't say what state you're in, but I'd think most places would do it the first way.

Where I am, the sales tax is calculated on the total amount of taxable purchases, and then rounded. It is not rounded for each item individually.

If you need to calculate sales tax to remit it to some department of revenue, they can instruct you on the proper way to calculate it. None of my guessing would matter at that point.

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