How to use the sales tax included price comparison
- Enter the price, the tax rate and any shipping for place A, and the same three things for place B.
- Enter the tax rate that applies where you would buy. Both rates start at 0, so no tax is assumed until you enter one.
- Tick Tax also applies to shipping if the place charges tax on delivery as well as on the item.
- Read which place costs less and by how much, each total, and the price place B would have to charge to match place A. Use Copy, Print or CSV to keep the comparison.
Formula
Tax = price x tax rate / 100 (or (price + shipping) x tax rate / 100 if shipping is taxed)
Total = price + shipping + tax
Difference = total A - total B
Price B that matches A = (total A - shipping B) / (1 + rate B / 100), or total A / (1 + rate B / 100) - shipping B when shipping is taxed
A positive difference means place A costs more. The matching price shows how far place B would have to move, which is useful in a negotiation.
$100 at 8% tax versus $100 at 5% tax
Place A sells an item for $100 and charges 8% tax, so the total is $108. Place B sells the same item for $100 with 5% tax, so the total is $105. Place B costs $3 less. For place B to cost exactly the same as place A, it would need a price of $108 / 1.05 = $102.86.
Shipping and tax rules move the gap. If place A is $100 with 10% tax and $20 shipping, taxed along with the item, its total is (100 + 20) x 1.10 = $132. Place B at $150 with no tax or shipping totals $150, so A costs $18 less. If shipping were not taxed, A would total $130.
Why price tags can mislead
Prices on shelves and websites often leave out tax and sometimes shipping, so two places can look equal and end up far apart. A lower sticker price with a higher tax rate or a delivery charge can cost more in the end. Comparing the totals puts both places on the same footing.
Tax is charged by the rules of where the sale is made, or in some cases where you live, and it can differ by product. No rate is built in here, so enter the rate you actually pay. The tool uses whatever you type and starts at 0.
Beyond the total
The cheapest total is not always the best choice. Returns, warranty, delivery time and the chance to see an item first can matter too. If the sizes or packs differ, compare by unit price with the unit price calculator instead.
Free shipping offers often depend on reaching a minimum order, which the free shipping threshold calculator can check. For the tax on one price by itself use the sales tax calculator, and to apply a sale first use the discount calculator.
Assumptions and limits
- Tax rates are entered by you and start at 0. Nothing is looked up for any location.
- Each place is treated as one price, one shipping charge and one tax rate. Taxes that vary by item or tax free periods are not modeled.
- Discounts, coupons and cash back are not included unless you subtract them from the price first.
- The matching price is a calculation for comparison and does not suggest a seller would agree to it.
Frequently asked questions
How do I compare prices in two places with different tax?
Work out the total for each place by adding tax and shipping to the price, then compare the totals. The tool does this and shows the difference.
Is shipping taxed?
In some places it is and in others it is not. Tick the box if the seller charges tax on shipping, and leave it clear if not.
What is the price that would match?
It is the price place B would need to charge for its total to equal place A's total, given its own tax rate and shipping.
Can I compare more than two places?
This tool compares two at a time. Run it for each pair, or compare the totals you get from the single price tools for the others.