Sales Tax and Tip Questions

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). For example, for a $100 item with a 6% tax rate: $100 x 0.06 = $6.

Front

What is a tip?

Back

A tip is a small amount of money given to someone for their service, typically 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). For example, for a $50 bill with a 15% tip: $50 x 0.15 = $7.50.

Front

What is the total cost including sales tax?

Back

The total cost including sales tax is the sum of the original price and the sales tax amount.

Front

How do you find the total cost after adding a tip?

Back

To find the total cost after adding a tip, add the tip amount to the original bill.

Front

If a computer costs $675 and the sales tax is 6%, what is the total cost?

Back

Total cost = $675 + ($675 x 0.06) = $715.50.

Front

If dinner costs $23.77 and you leave a 10% tip, what is the total cost?

Back

Total cost = $23.77 + ($23.77 x 0.10) = $26.15.

Front

What is the sales tax on an item priced at $24.95 with a 7% tax rate?

Back

Sales tax = $24.95 x 0.07 = $1.75.

Front

If a haircut costs $15 and you give a 20% tip, what is the total cost?

Back

Total cost = $15 + ($15 x 0.20) = $18.00.