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 when you buy it. 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, for a $100 item with a 5% tax, the tax is $100 x 0.05 = $5.

Front

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

Back

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

Front

If an item costs $50 and the sales tax is 8%, what is the total cost?

Back

Total Cost = $50 + ($50 x 0.08) = $54.

Front

What is a sales tax rate?

Back

A sales tax rate is the percentage that is charged on the sale of goods and services, which varies by location.

Front

If the price of a toy is $20 and the sales tax is 5%, how much tax do you pay?

Back

Tax = $20 x 0.05 = $1.00.

Front

What is the total cost of a $100 item with a 10% sales tax?

Back

Total Cost = $100 + ($100 x 0.10) = $110.

Front

What does it mean if an item is tax-exempt?

Back

Tax-exempt means that the item is not subject to sales tax, often due to specific laws or regulations.

Front

How does sales tax affect the final price of an item?

Back

Sales tax increases the final price you pay for an item, making it higher than the sticker price.

Front

If a shirt costs $30 and the sales tax is 6%, what is the total cost?

Back

Total Cost = $30 + ($30 x 0.06) = $31.80.