Calculating Sales Tax

Show your work for each problem.

1.
A book costs 20 dollars. The sales tax rate is 5%. What is the tax amount?
1. a)0.50 dollars
2. b)10 dollars
3. c)1 dollar
4. d)5 dollars
Answer: 1 dollar
Tax = dollar. Remember: 5% means 5 cents per dollar!
2.
A toy costs 40 dollars. The tax rate is 10%. How much is the tax?
Answer: 4
Tax = dollars. 10% is one of the easiest rates to calculate!
3.
What is 8% written as a decimal?
1. a)0.8
2. b)8.0
3. c)0.08
4. d)0.008
Answer: 0.08
. This is a crucial step in tax calculations!
4.
A shirt costs 30 dollars. The tax rate is 5%. Find the total price including tax.
Answer: 31.50
1. What is 5% as a decimal? 0.05
2. What is the tax amount? (30 times 0.05) 1.50
3. What is the total price? (30 + tax) 31.50
5.
The multiplier to find total price with 6% tax is 1.06. What is the multiplier for 9% tax?
Answer: 1.09
Multiplier = . This gives you the total in one step!
6.
A laptop costs 500 dollars. With 8% sales tax, what is the total price?
1. a)540 dollars
2. b)508 dollars
3. c)504 dollars
4. d)580 dollars
Answer: 540 dollars
Tax = . Total = dollars. Or: .
7.
A phone costs 250 dollars. The tax rate is 6%. What is the total price?
Answer: 265
dollars. The tax alone is dollars.
8.
You buy shoes for 80 dollars and a bag for 45 dollars. The tax rate is 7%. What is the total cost?
Answer: 133.75
1. What is the subtotal? (80 + 45) 125
2. What is 7% as a decimal? 0.07
3. What is the tax amount? (125 times 0.07) 8.75
4. What is the total cost? (125 + 8.75) 133.75
9.
A skateboard costs 75 dollars before tax. With 8% tax, about how much extra will you pay?
1. a)6 dollars
2. b)75 dollars
3. c)0.60 dollars
4. d)8 dollars
Answer: 6 dollars
Tax = dollars. This is the extra amount you pay due to tax.
10.
A meal costs 45 dollars. The tax rate is 7.5%. What is the tax amount? (Round to 2 decimal places)
Answer: 3.38
Tax = , rounded to .
11.
A tablet costs 350 dollars. Using the one-step method with 6% tax, find the total price.
Answer: 371
1. What is 6% as a decimal? 0.06
2. What is the one-step multiplier? (1 + 0.06) 1.06
3. What is 350 times 1.06? 371
12.
An item costs 89.99 dollars. With 8.25% tax, what is the total price?
1. a)96.99 dollars
2. b)98.24 dollars
3. c)97.42 dollars
4. d)97.41 dollars
Answer: 97.41 dollars
, rounded to dollars.
13.
You have 100 dollars. The tax rate is 8%. What is the maximum you can spend on an item and still afford tax? (Round down)
Answer: 92.59
Maximum item price = dollars. Check: .
14.
Store A sells a jacket for 120 dollars with 5% tax. Store B sells the same jacket for 115 dollars with 9% tax. Which store has the better total price?
Answer: B
1. What is Store A's total? (120 times 1.05) 126
2. What is Store B's total? (115 times 1.09) 125.35
3. Which store is cheaper? (Type A or B) B
15.
The total price of an item with 10% tax is 66 dollars. What was the original price before tax?
Answer: 60
Original price = dollars. Check: .
16.
Which formula correctly calculates the total price with tax?
1. a)Price divided by Tax Rate
2. b)Price times Tax Rate
3. c)Price + (Price times Tax Rate)
4. d)Price - Tax Rate
Answer: Price + (Price times Tax Rate)
Total = Price + Tax. Tax = Price times Rate. So Total = Price + (Price times Rate).
17.
You buy 3 items: a book for 15 dollars, a pen for 3 dollars, and a notebook for 7 dollars. The book has no tax (educational), but the pen and notebook have 6% tax. What is the total?
Answer: 25.60
1. What items are taxed? What is their combined price? 10
2. What is the tax on taxed items? (10 times 0.06) 0.60
3. What is the total? (Book + Pen + Notebook + Tax) 25.60
18.
A restaurant meal costs 48 dollars before tax. With 8% tax, what is the total? (Round to 2 decimal places)
Answer: 51.84
dollars.