Calculating Sales Tax

Front

What is sales tax?

Back

Sales tax is a percentage of the sale price of goods and services that is collected by the seller and paid to the government.

Front

How do you calculate the total cost including sales tax?

Back

To calculate the total cost including sales tax, multiply the original price by the sales tax rate (as a decimal), then add that amount to the original price.

Front

If an item costs $100 and the sales tax is 5%, what is the total cost?

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The total cost is $105. (Calculation: $100 + ($100 * 0.05) = $105)

Front

What is the formula to calculate sales tax?

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Sales Tax = Original Price x Sales Tax Rate.

Front

If the sales tax rate is 8%, how much tax would you pay on a $50 purchase?

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You would pay $4 in sales tax. (Calculation: $50 x 0.08 = $4)

Front

What is the final price of an item that costs $200 with a sales tax of 10%?

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The final price is $220. (Calculation: $200 + ($200 * 0.10) = $220)

Front

How does the sales tax rate vary by location?

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Sales tax rates can vary by state, county, and city, meaning different locations may have different rates.

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What is the difference between state tax and sales tax?

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State tax is a broader term that can include various taxes imposed by the state, while sales tax specifically refers to the tax on the sale of goods and services.

Front

If a product is priced at $150 and the sales tax is 6%, what is the total amount paid?

Back

The total amount paid is $159. (Calculation: $150 + ($150 * 0.06) = $159)

Front

What is the impact of sales tax on consumer behavior?

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Higher sales tax can discourage consumers from making purchases, while lower sales tax may encourage spending.