You may choose to include sales tax in the price of an item, rather than show the tax separately. If so, use the following method to "back into" the tax. If you sell an item for $100, including tax, and the tax rate is 9.68%, the tax calculation is $ 8.83, as follows:
Sales price including tax divided by (1 plus the tax rate) equals the sales price excluding tax
$100 divided by 1.0968 equals $91.17
Sales price including tax minus sales price excluding tax equals tax
$100 minus $91.17 equals $8.83
You can verify your calculations by multiplying the sales price of $91.17 by the tax rate of 9.68% to arrive at $8.83. To use the factoring method another way, multiply the sales price including tax ($100) by the factor .08825675 for retail sales at 9.68%. You will arrive at the same tax amount of $8.83.