Sales Tax and Tip Questions

Front

What is sales tax?

Back

Sales tax is a percentage of the purchase price added to the cost of goods and services, 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). For example, for a $100 item with a 6% tax rate: $100 x 0.06 = $6.

Front

What is a tip?

Back

A tip is a small amount of money given to someone for their service, typically calculated as a percentage of the total bill.

Front

How do you calculate a tip?

Back

To calculate a tip, multiply the total bill by the tip percentage (as a decimal). For example, for a $50 bill with a 15% tip: $50 x 0.15 = $7.50.

Front

What is the total cost including sales tax?

Back

The total cost including sales tax is the sum of the original price and the sales tax amount. For example, if an item costs $50 and the sales tax is $3, the total cost is $50 + $3 = $53.

Front

If a meal costs $30 and the tip is 20%, how much is the tip?

Back

The tip is $30 x 0.20 = $6.

Front

What is the formula for calculating total cost with tip?

Back

Total Cost = Original Bill + (Original Bill x Tip Percentage).

Front

What is the sales tax rate?

Back

The sales tax rate is the percentage of the purchase price that is added as tax. It varies by location.

Front

How do you convert a percentage to a decimal?

Back

To convert a percentage to a decimal, divide by 100. For example, 15% becomes 0.15.

Front

What is the total cost of an item priced at $40 with a 5% sales tax?

Back

Total Cost = $40 + ($40 x 0.05) = $40 + $2 = $42.