Calculating Sales Tax

Front

What is sales tax?

Back

Sales tax is a percentage of the price of a product that is added to the total cost at the time of purchase. 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 price of the item 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 final price after tax?

Back

Final Price = Original Price + Sales Tax. Alternatively, Final Price = Original Price x (1 + Sales Tax Rate).

Front

If a shirt costs $30 and the sales tax is 10%, what is the final price?

Back

Final Price = $30 + ($30 x 0.10) = $30 + $3 = $33.

Front

What is a sales tax rate?

Back

The sales tax rate is the percentage of the sale price that is charged as tax. It varies by location and type of product.

Front

If an item costs $200 and the sales tax is 8%, how much tax do you pay?

Back

Sales Tax = $200 x 0.08 = $16.

Front

What is the total amount paid if a video game costs $50 with a sales tax of 6%?

Back

Total Amount = $50 + ($50 x 0.06) = $50 + $3 = $53.

Front

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

Back

To convert a percentage to a decimal, divide the percentage by 100. For example, 15% becomes 0.15.

Front

If a pair of shoes costs $80 and the sales tax is 20%, what is the final price?

Back

Final Price = $80 + ($80 x 0.20) = $80 + $16 = $96.

Front

What is the sales tax on a $150 item with a 5% tax rate?

Back

Sales Tax = $150 x 0.05 = $7.50.