Tips & Sales Tax

Front

What is a tip?

Back

A tip is a small amount of money given to someone for their service, usually in the hospitality industry, as a way to show appreciation.

Front

How do you calculate a tip?

Back

To calculate a tip, multiply the total bill amount by the tip percentage (expressed as a decimal). For example, for an 18% tip on a $100 bill, you would calculate 100 x 0.18 = $18.

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 (expressed as a decimal). For example, for a $100 item with a 7% sales tax, you would calculate 100 x 0.07 = $7.

Front

What is the total cost of a meal including tip?

Back

The total cost of a meal including tip is calculated by adding the tip amount to the original bill amount.

Front

If a meal costs $50 and you leave a 15% tip, what is the total cost?

Back

Total cost = $50 + ($50 x 0.15) = $50 + $7.50 = $57.50.

Front

What is the formula for calculating total cost with sales tax?

Back

Total cost = Price of item + (Price of item x Sales tax rate).

Front

If an item costs $200 and has a 5% sales tax, what is the total cost?

Back

Total cost = $200 + ($200 x 0.05) = $200 + $10 = $210.

Front

What is the difference between a tip and sales tax?

Back

A tip is a voluntary payment for service, while sales tax is a mandatory charge imposed by the government on sales.

Front

How much would you tip on a $120 bill at 18%?

Back

Tip = $120 x 0.18 = $21.60.