Sales Tax and Income Tax

Front

What is earned income?

Back

Earned income refers to money received for work performed, including wages, salaries, and tips.

Front

How do you calculate the final price of an item with sales tax?

Back

To calculate the final price, multiply the original price by the sales tax rate, then add that amount to the original price.

Front

What is the sales tax rate in the example of a $990 T.V purchase?

Back

The sales tax rate is 9%.

Front

If a raincoat costs $39.99 and has a sales tax rate of 7%, what is the final price?

Back

The final price is $42.79.

Front

What is the total cost of a $72 battery with a 7.5% sales tax?

Back

The total cost is $77.40.

Front

What does it mean when sales tax is added to the price?

Back

It means that the sales tax is calculated as a percentage of the original price and is added to the total cost.

Front

What is disposable income?

Back

Disposable income is the amount of money that households have available for spending and saving after income taxes have been deducted.

Front

What is unearned income?

Back

Unearned income is money received from sources other than employment, such as investments, pensions, or social security.

Front

How do you find the sales tax amount on a purchase?

Back

Multiply the purchase price by the sales tax rate (as a decimal).

Front

If a product costs $100 and the sales tax is 5%, what is the sales tax amount?

Back

The sales tax amount is $5.