Calculating Sales and Income Taxes

Front

What is sales tax?

Back

Sales tax is a percentage of the sale price of goods and services that is collected by the seller and paid to the government.

Front

How do you calculate the total cost of an item including sales tax?

Back

To calculate the total cost, multiply the item's price by the sales tax rate, then add that amount to the original price. Formula: Total Cost = Price + (Price x Sales Tax Rate).

Front

If an item costs $100 and the sales tax rate is 8%, what is the total cost?

Back

Total Cost = $100 + ($100 x 0.08) = $100 + $8 = $108.

Front

What is the formula to calculate the amount of tax withheld from income?

Back

Tax Withheld = Income x Tax Rate.

Front

If John earns $250 per week and the tax rate is 5%, how much does he pay in taxes?

Back

Tax Withheld = $250 x 0.05 = $12.50.

Front

How do you calculate net income after taxes?

Back

Net Income = Gross Income - Tax Withheld.

Front

If John earns $250 and pays $12.50 in taxes, what is his net income?

Back

Net Income = $250 - $12.50 = $237.50.

Front

What is the total cost of an item priced at $499 with a sales tax of 9%?

Back

Total Cost = $499 + ($499 x 0.09) = $499 + $44.91 = $543.91.

Front

How do you convert a percentage to a decimal for calculations?

Back

To convert a percentage to a decimal, divide the percentage by 100. For example, 5% becomes 0.05.

Front

What is the total cost of a lawn mower priced at $329 with an 8% sales tax?

Back

Total Cost = $329 + ($329 x 0.08) = $329 + $26.32 = $355.32.