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Division of Taxation

Calculating the Tax

As a seller, you have the option of calculating Sales Tax due using either the tax bracket (See Sales Tax Collection Schedule, Form ST-75) or by multiplying the taxable receipts by the applicable tax rate. If you are not using the tax bracket, you must:

  • Calculate the tax to the third decimal point.
  • Round up to the next cent, if one-half cent ($0.005) or higher.
  • Round down, if less than $0.005.

Example: A customer purchases flowers for $20. Calculate the tax to the third decimal place as follows:

$20 (flowers) x 0.06625 (sales tax rate) = $1.325

$20 (flowers) + $1.33 (sales tax) = $21.33

You must collect $21.33 from the customer.

Last Updated: Thursday, 03/19/20