Sales Tax and Tip

Front

What is sales tax?

Back

Sales tax is a percentage of the purchase price that is added to the total cost of an item or service, 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, for a $100 item with a 6% sales tax, the calculation is $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, usually 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). For example, for a $50 bill with a 20% tip, the calculation is $50 x 0.20 = $10.

Front

What is the total cost of an item including sales tax?

Back

The total cost is the sum of the purchase price and the sales tax. For example, if an item costs $100 and the sales tax is $6, the total cost is $100 + $6 = $106.

Front

If an item costs $75 and the sales tax rate is 8%, how much sales tax do you pay?

Back

$6.

Front

If a dinner bill is $120 and the sales tax is 8%, what is the total cost after tax?

Back

$129.60.

Front

What is the total cost of a $50 item after adding 7% sales tax?

Back

$53.50.

Front

If you leave a 20% tip on a $40 bill, how much is the tip?

Back

$8.

Front

What is the total cost of a $120 dinner bill after adding 8% sales tax and leaving a 20% tip?

Back

$151.20.