Chapter 8 Programming Complex Tax Rates
75
TS4240 User’s Guide
Calculating Your Tax
This section provides instructions for figuring your own tax code if your
specific state uses a tax table. Take the time to follow the Example Tax
Worksheet on page 77. Familiarize yourself with the method of
determining the tax code.
Then, using the worksheet on page 78, duplicate the method of calculating
your state tax code by the steps described in this section. To do this you
need to get a copy of your state's Retail Tax Chart from your local Tax
Office. After you are done, write down the tax code and save the
information for future reference.
Every tax table consists of tax brackets. Each consecutive tax bracket is
assigned a tax amount which is exactly one cent higher than that assigned
to the previous tax bracket. For example, part of a tax chart might look
like:
In our Example Tax Worksheet, a sale from .00 to .08 is not taxed. The
next tax bracket a sale from .09 to .24 is taxed one cent. The next tax
bracket a sale from .25 to .41 is taxed two cents. The tax table progresses
in a similar manner.
To calculate your tax rate
1
Using The Worksheet on page 78, complete Step A with the appropriate
amounts from your state's Retail Tax Chart.
2
For the following, see the Example Tax Worksheet, Step B: