Sales Tax and Tip Word Problems

Front

What is sales tax?

Back

A 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).

Front

If a car costs $12,985 and the sales tax is 6%, what is the amount of tax?

Back

$779.10

Front

What is the final price of an item after sales tax is added?

Back

Final Price = Original Price + (Original Price × Sales Tax Rate)