Sales Tax and Tip Practice

Front

What is sales tax?

Back

Sales tax is a percentage of the purchase price that is added to the total cost of goods or services. It is collected by the seller and paid to the government.

Front

How do you calculate sales tax?

Back

To calculate sales tax, multiply the purchase price by the sales tax rate (as a decimal). For example, if an item costs $100 and the sales tax rate is 5%, the sales tax is $100 x 0.05 = $5.

Front

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

Back

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