DOL 04/22 Sales Tax and Income

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, 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 the price is $100 and the sales tax rate is 8%, the sales tax is $100 x 0.08 = $8.

Front

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

Back

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

Front

If an item costs $50 and the sales tax rate is 5%, what is the total cost?

Back

Total Cost = $50 + ($50 x 0.05) = $50 + $2.50 = $52.50.

Front

What does it mean to express a percentage as a decimal?

Back

To express a percentage as a decimal, divide the percentage by 100. For example, 7.25% as a decimal is 0.0725.

Front

How do you convert a percentage to a decimal for calculations?

Back

To convert a percentage to a decimal, move the decimal point two places to the left. For example, 8.25% becomes 0.0825.

Front

What is the sales tax on a $200 purchase with a sales tax rate of 6%?

Back

Sales Tax = $200 x 0.06 = $12.

Front

If a shirt costs $30 and the sales tax is 7%, how much will you pay in total?

Back

Total Cost = $30 + ($30 x 0.07) = $30 + $2.10 = $32.10.

Front

What is the sales tax on a $648.50 washer with an 8% sales tax rate?

Back

Sales Tax = $648.50 x 0.08 = $51.88.

Front

What is the expression to calculate sales tax on a $250 purchase at 7.25%?

Back

Sales Tax = $250 x 0.0725.