Sales Tax & Gratuity

Front

What is sales tax?

Back

Sales tax is a percentage of the purchase price added to the total cost of goods or 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 6% tax rate: $100 x 0.06 = $6.

Front

What is gratuity?

Back

Gratuity, commonly known as a tip, is a sum of money given to service workers for their service, typically calculated as a percentage of the total bill.

Front

How do you calculate gratuity?

Back

To calculate gratuity, multiply the total bill by the gratuity percentage (as a decimal). For example, for a $50 bill with a 15% tip: $50 x 0.15 = $7.50.

Front

What is the total cost including sales tax?

Back

The total cost including sales tax is the sum of the original price and the sales tax amount. Total Cost = Original Price + Sales Tax.

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) = $50 + $4 = $54.

Front

What is the formula for calculating total cost with shipping and tax?

Back

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

Front

If Ms. Hopper spent $81.60 on jewelry and paid $4.95 for shipping, what is the total before tax?

Back

Total before tax = $81.60 + $4.95 = $86.55.

Front

How do you find the total cost after including both sales tax and gratuity?

Back

Total Cost = (Original Price + Sales Tax) + Gratuity.

Front

If a meal costs $50 and the sales tax is 6.75%, what is the total cost?

Back

Total Cost = $50 + ($50 x 0.0675) = $50 + $3.375 = $53.375.