Everyday Money

Sales Tax & Discount Calculator

Shopping math gets confusing fast when a discount and a tax both apply. Enter the original price along with your discount and tax percentages to get the real, final price.

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Tax Amount

How It Works

The order of operations matters: the discount is applied to the original price first, and then sales tax is applied to the already-discounted price (this matches how most retailers calculate tax at checkout). The formula is: Final Price = Price × (1 − Discount%) × (1 + Tax%).

Worked Example

A $120 item with a 25% discount and 7% sales tax comes out to $96.30 at checkout. You save $30 from the discount, bringing the price to $90, and then 7% tax is charged on that discounted $90 — not the original $120 — adding $6.30. It's a common mix-up to calculate tax on the sticker price instead of the discounted price, which would (incorrectly) suggest a final price of $98.10 instead of the actual $96.30.

Frequently Asked Questions

Is tax always applied after the discount?
In most retail contexts, yes — tax is charged on the price the customer actually pays, which is the discounted price. Some jurisdictions or situations may differ, so check your receipt if you want to confirm the exact method used.
Can I use this for calculating a tip on top of tax too?
For that specific combination, the dedicated Tip Calculator is a cleaner fit since it's built around splitting a bill and computing gratuity directly.

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