Taxes & Tips

Front

What is a tip?

Back

A tip is a small amount of money given to someone for their service, usually in restaurants, 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 (as a decimal). For example, for a $20 bill with a 20% tip: $20 x 0.20 = $4.

Front

What is sales tax?

Back

Sales tax is a percentage added to the price 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 $39.99 item with a 7% tax: $39.99 x 0.07 = $2.80.

Front

What is the total cost including tax?

Back

To find the total cost including tax, add the sales tax to the original price. For example, if an item costs $39.99 and the tax is $2.80, the total cost is $39.99 + $2.80 = $42.79.

Front

What is the formula for total bill including tip and tax?

Back

Total Bill = Subtotal + (Subtotal x Tax Rate) + (Subtotal x Tip Rate).

Front

If a meal costs $28 and the tax is 12%, what is the tax amount?

Back

Tax amount = $28 x 0.12 = $3.36.

Front

If a meal costs $28 and you want to leave a 20% tip, how much is the tip?

Back

Tip amount = $28 x 0.20 = $5.60.

Front

What is the final bill if the subtotal is $30, tax is 10%, and tip is 20%?

Back

Final Bill = $30 + ($30 x 0.10) + ($30 x 0.20) = $39.

Front

What is a subtotal?

Back

The subtotal is the total amount before any taxes or tips are added.