Sales Tax and Tipping

Front

What is sales tax?

Back

A 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 $20 and the total after tax is $20.40, what is the sales tax rate?

Back

The sales tax rate is 2%.

Front

What is a tip?

Back

A tip is a sum 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).

Front

If a bill is $8.50 and the tip is 20%, how much is the tip?

Back

The tip is $1.70.

Front

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

Back

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

Front

If the sales tax rate is 0.065 and you spend $58.50, how much will you spend in total?

Back

You will spend $62.30 in total.

Front

How do you find the amount spent on sales tax?

Back

Amount spent on sales tax = Price x Sales Tax Rate.

Front

If you spend $58.50 with a sales tax rate of 0.065, how much do you spend on tax?

Back

You spend $3.80 on tax.