Question

If an amount is given and the final amount after-tax is given then how to calculate the tax percentage?

Answer 1

Calculate the tax percentage

The tax amount can be calculated as

Tax Amount$=$ Final price of product after tax $-$Price of product before tax

Now, the tax percentage can be calculated as

$\mathrm{Tax}\mathrm{percentage}=\frac{\mathrm{Tax}\mathrm{amount}}{\mathrm{Price}\mathrm{of}\mathrm{product}\mathrm{before}\mathrm{tax}}\times 100$

Consider this example:

Let the price of a product before tax be Rs. $1000$

Let the final price of product after tax be Rs. $1200$

Now, the tax amount$=1200-1000$

$\Rightarrow$ Tax amount $=$Rs. $200$

Therefore the tax percentage can be calculated as

Tax percentage $=\frac{200}{1000}\times 100$

$\Rightarrow$ Tax percentage $=20\%$

Therefore, tax percentage can be calculated by subtracting price of the product before tax from the final price of the product after tax.