Sales Tax Flashcard

Front

What is sales tax?

Back

Sales tax is a percentage of the purchase price that is added to the total cost of goods and 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, for a $50 purchase with an 8% sales tax, the calculation is $50 x 0.08 = $4.

Front

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

Back

$4

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 a TV costs $350 and the sales tax rate is 6%, how much total will you pay?

Back

$350 + ($350 x 0.06) = $350 + $21 = $371.

Front

If the sales tax rate is 6.5%, how much sales tax would you pay on a $75 purchase?

Back

$4.88

Front

What is the sales tax on a $200 purchase if the sales tax rate is 9.5%?

Back

$19.00

Front

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

Back

To convert a percentage to a decimal, divide by 100. For example, 8% becomes 0.08.

Front

If Jessica buys a $10.00 box of candy with a 5% sales tax, what is the total cost?

Back

$10.50

Front

What is the sales tax on a $100 purchase with a 7% sales tax rate?

Back

$7.00