Calculating Sales Tax

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).

Front

If an item costs $100 and the sales tax is 5%, what is the sales tax amount?

Back

$5

Front

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

Back

Total Cost = Price + (Price x Sales Tax Rate) or Total Cost = Price x (1 + Sales Tax Rate).

Front

If a shirt costs $30 and the sales tax is 10%, what is the total cost?

Back

Total Cost = $30 + ($30 x 0.10) = $33.

Front

What is the sales tax on a $50 item with a 7% tax rate?

Back

Sales Tax = $50 x 0.07 = $3.50.

Front

If the total cost of an item is $120 and the sales tax rate is 20%, what was the original price?

Back

Original Price = Total Cost / (1 + Sales Tax Rate) = $120 / 1.20 = $100.

Front

What is the total cost of a $200 item with a 15% sales tax?

Back

Total Cost = $200 + ($200 x 0.15) = $230.

Front

If a video game costs $60 and the sales tax is 8%, what is the final price?

Back

Final Price = $60 + ($60 x 0.08) = $64.80.

Front

What is the sales tax on a $25 item with a 6% tax rate?

Back

Sales Tax = $25 x 0.06 = $1.50.