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How to Calculate Hotel Tax

how to calculate us tax

If you stay in a hotel, chances are you will pay a room tax. (Photo: Thinkstock/Comstock/Getty Images )

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Step 1

Find the local sales tax rate and hotel tax rate, both of which will be a percentage. The local sales tax rate might be a combination of city sales tax and state sales taxes. You might also find the hotel adds a bed tax to your room cost, which is either a percentage or a fixed rate.

Step 2

Add up the different tax percentages to find the total percentage of tax you will be paying for your stay. For example, if the hotel tax is 5 percent, the sales tax is 4 percent and the bed tax is 1 percent, you will be paying a total of 10 percent tax on top of your room charge.

Step 3


the total cost of your room for your stay by multiplying the cost of the room per night by the total number of nights you are staying.

Step 4

Convert the percentage of tax you are paying into a decimal; for instance, 10 percent would become 0.10 and 20 percent would become 0.20.

Multiply the total cost of your room for your stay by the total tax percentage. This will give you the total amount of tax you will have to pay. For example, if the total cost of your room for your entire stay is $500 and the taxes amounted to 10 percent, you will multiply 500 by 0.10 to get 50. This means you will have to pay $50 in taxes on top of the room cost.

Add any additional fixed-rate taxes. If they are, say, $2 a night, and you stay five nights, add $10 to the room cost and the percentage-based taxes.

Category: Taxes

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