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Sales Tax Collected Reasonableness CalculatorTaxable Sales x Rate

What does this come to under the current IRS rules?

Expected sales tax from gross sales less exempt sales at the combined rate, the exempt share and the difference to tax recorded.

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  • Nothing stored or sent
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Your figures
Example figuresIllustrative only. Type over them with your own.
Difference (recorded less expected)
-$8,225
Recorded tax less the expectation
Taxable sales
$5,250,000
Exempt share of gross sales
17.97%
Drawn to one scale
Taxable sales$5,250,000
Expected sales tax$380,625
Recorded amount$372,400
Difference (recorded less expected)-$8,225
All results
MeasureResult
Taxable sales$5,250,000
Exempt share of gross sales17.97%
Expected sales tax$380,625
Recorded amount$372,400
Difference (recorded less expected)-$8,225
Difference as % of expected-2.16%
InvestigateNo: within the threshold
Implied rate on taxable sales7.09%
How this was worked out
Work shownrecomputed as you type
Taxable sales = gross sales - exempt sales
Expected tax = taxable sales x combined rate
Implied rate = recorded tax / taxable sales

Illustrative arithmetic on the figures you enter. Check the result against your firm's methodology before relying on it.

The formulas

  • Taxable sales = gross sales - exempt sales
  • Expected tax = taxable sales x combined rate
  • Implied rate = recorded tax / taxable sales

How it works

Sales tax collected follows taxable sales closely, so a simple product gives a tight expectation. A low implied rate points to sales coded exempt without certificates, a stale rate in the billing system, or tax recorded in revenue.

Sellers in several jurisdictions need a blended rate weighted by taxable sales, or a separate run for each. Test a sample of exempt sales for valid exemption certificates, since the exempt share drives the expectation.

Illustrative figures only. Check the result against your firm's methodology before relying on it.

Common questions

Where do I find the combined rate?

From the state and local rate tables for each location where sales are sourced. The state sales tax calculators on this site list state rates.

Should use tax be included?

No. Use tax on purchases is a separate liability. Test it against taxable purchases.

What does a high implied rate mean?

Over-collection, which is a liability to customers or the state, or exempt sales that were taxed.

Formulas on this page are the standard definitions.

Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.

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