Formula
Tax % = Tax Collected ÷ Gross Revenue × 100
Formula Components
Example
Your store collected $8,450 in sales tax on $105,625 in gross revenue this month:How It Works
Tax % divides total tax collected by gross revenue and multiplies by 100. Gross revenue doesn’t include the tax itself, so the result reads close to the average tax rate you charge, weighted across all orders and jurisdictions. If tax is charged on discounted prices, heavy discounting pulls Tax % below your stated rates.When to Use
Related Metrics
See all Adjustments metrics →