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How to Calculate a Percentage Discount
Understanding Sales Tax by State
Stacking Discounts: How Multiple Discounts Work
Smart Shopping: When Sales Are Really Worth It
Frequently Asked Questions
Multiply the original price by the discount percentage divided by 100 to find the discount amount. Subtract that from the original price to get the sale price. For example, 25% off $150 is a $37.50 discount, making the sale price $112.50.
Sales tax is calculated on the discounted price, not the original price. If an item is $150 with a 25% discount, the sale price is $112.50 and sales tax is calculated on $112.50.
When two discounts are applied sequentially (for example, 25% off then an extra 10% off), they do not add up to 35%. The second discount applies to the already-reduced price. In this case, $150 becomes $112.50 then $101.25, equivalent to about 32.5% off.
Five states have no statewide sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. However, Alaska allows local governments to charge sales tax, so some areas in Alaska do have a local sales tax.