Sales Tax

Consumption Taxes

By Jenna Nelson

What is consumption tax?

Consumption tax is a tax on the purchase of good and services in the form of sales tax, excise tax, and other special taxes.​

Subject | Subject

Some text here about the topic of discussion

A tax on certain goods that aren't typically considered a necessity; sometimes called a luxury tax.

Excise Tax

A tax on goods and services that goes to a state or local government.

Sales Tax

What is consumption tax? (continued)

Some text here about the topic of discussion

How do I calculate costs of items with tax included?

Convert the tax percentage into a decimal by dividing the number by 100.

Multiply the t​ax percentage by the cost of the item.

Add the tax amount, in dollars, to the original price.​

Subject | Subject

Some text here about the topic of discussion

Multiple Choice

CHECK FOR UNDERSTANDING: A tax on goods and services that goes to a state or local government.

• Consumption Tax

• Sales Tax

• Excise Tax

Multiple Choice

CHECK FOR UNDERSTANDING: A tax on certain goods that aren't typically considered a necessity; sometimes called a luxury tax.

• Consumption Tax

• Sales Tax

• Excise Tax