Next, calculate the taxes. Put the tax rate below the subtotal labelled as the tax rate. If you don't know the tax rate in your area, contact your local sales tax authorities to find out the number. You can also look online to find the sale tax or contact your accountant.
In some states, you won't need to charge sales tax for services. Check your local laws to find out whether you need to charge it in your area. Also, it may very by the type of business. For instance, you may not need to charge sales tax if you're a nonprofit. It also may depend on whether the primary object of the sale is the service (such as at the dentist) or the equipment (such as in computer repair). Taxes are usually charged in the place the service was performed, so if you go to a customer's place of residence in a suburb, you must use that city's sales tax. However, again, always check your local laws. Sales tax is a percentage. To figure out the tax, you multiply the subtotal by percentage, expressed as a decimal. For instance, if your total is $50 and the sales tax is 8.25%, you multiply $50 by 0.0825 to get 4.125. Round the number off as needed. Here the tax would be $4.13. Add the tax in. Next, you add the number you got to the original subtotal. In the example, you add $4.13 to $50 to get the grand total of $54.13.