Sales Tax and Tip

Front

What is sales tax?

Back

Sales tax is a percentage of the purchase price added to the 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 $100 item with a 5% sales 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 = Purchase Price + (Purchase Price x Sales Tax Rate).

Front

If an item costs $50 and the sales tax is 6%, how much is the sales tax?

Back

Sales Tax = $50 x 0.06 = $3.00.

Front

What is a tip?

Back

A tip is a small amount of money given to someone for their service, usually calculated as a percentage of the total bill.

Front

How do you calculate a tip?

Back

To calculate a tip, multiply the total bill by the tip percentage (as a decimal). For example, for a $40 bill with a 15% tip, the tip is $40 x 0.15 = $6.

Front

What is the common percentage for tipping in restaurants?

Back

The common percentage for tipping in restaurants is typically between 15% to 20% of the total bill.

Front

If you want to leave a 20% tip on a $30 bill, how much should you tip?

Back

Tip = $30 x 0.20 = $6.

Front

What is the difference between sales tax and tips?

Back

Sales tax is a government-mandated charge on purchases, while tips are voluntary payments for service.

Front

If a shirt costs $25 and the sales tax is 8%, what is the final price?

Back

Final Price = $25 + ($25 x 0.08) = $25 + $2 = $27.