Sales Tax

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 sales tax?

Back

To calculate sales tax, multiply the price of the item by the sales tax rate (as a decimal).

Front

If an item costs $100 and the sales tax rate is 5%, how much is the sales tax?

Back

$5.00

Front

What is the total cost of an item including sales tax?

Back

Total cost = Item price + Sales tax.

Front

Convert 6% to a decimal.

Back

0.06

Front

If a shirt costs $20 and the sales tax is 8%, what is the total cost?

Back

Total cost = $20 + ($20 * 0.08) = $21.60.

Front

What is the formula to find the total cost including sales tax?

Back

Total Cost = Price + (Price * Sales Tax Rate).

Front

How do you convert a percentage to a decimal?

Back

Divide the percentage by 100.

Front

If the sales tax on a $50 item is $4, what is the sales tax rate?

Back

Sales tax rate = (Sales tax / Price) * 100 = (4 / 50) * 100 = 8%.

Front

What is the sales tax on a $200 purchase with a 7% sales tax rate?

Back

Sales tax = $200 * 0.07 = $14.