Introduction to Sales Tax

Show your work for each problem.

1.
What is sales tax?
1. a)A percentage added to the price that goes to the government
2. b)A fee for returning items
3. c)A discount on products
4. d)The original price of an item
Answer: A percentage added to the price that goes to the government
Sales tax is a percentage of the purchase price that is collected by the government. It's added to the cost of goods and services.
2.
Convert 8% to a decimal.
Answer: 0.08
To convert a percentage to a decimal, divide by 100:
3.
A pencil costs 2 dollars. With a 10% tax rate, what is the tax amount?
Answer: 0.20
Tax = Price Rate = dollars
4.
If an item costs 50 dollars and the tax is 5 dollars, what is the total cost?
1. a)55 dollars
2. b)60 dollars
3. c)45 dollars
4. d)50 dollars
Answer: 55 dollars
Total = Price + Tax = dollars
5.
A notebook costs 10 dollars. The tax rate is 5%. Find the total cost.
Answer: 10.50
1. Convert 5% to a decimal 0.05
2. Calculate the tax: 0.50
3. Calculate total: 10.50
6.
What multiplier do you use to find the total price when the tax rate is 6%?
Answer: 1.06
Multiplier = . Multiply the price by 1.06 to get the total.
7.
A skateboard costs 75 dollars. With an 8% tax rate, find the total price using the one-step method.
Answer: 81
1. Convert 8% to a decimal 0.08
2. Find the multiplier: 1.08
3. Calculate total: 81
8.
A shirt costs 40 dollars. With a 7% tax, what is the tax amount?
1. a)2.80 dollars
2. b)28.00 dollars
3. c)7.00 dollars
4. d)4.00 dollars
Answer: 2.80 dollars
Tax = dollars. Don't confuse 7% (the rate) with the actual dollar amount.
9.
A video game costs 60 dollars. The tax rate is 9%. What is the total cost?
Answer: 65.40
Tax = . Total = dollars. Or: dollars.
10.
You buy a backpack for 55 dollars and the tax rate is 6%. How much do you pay in total?
Answer: 58.30
1. Calculate the tax: 3.30
2. Calculate total: 58.30
11.
Which calculation correctly finds the total cost of a 25 dollar item with 4% tax?
1. a)
2. b)
3. c)
4. d)
Answer:
is correct. Option B only calculates the tax, not the total. Options A and D incorrectly add 4 or 0.04 directly.
12.
A pair of sneakers costs 120 dollars. With a 7.5% tax rate, what is the total cost?
Answer: 129
1. Convert 7.5% to a decimal 0.075
2. Calculate tax: 9
3. Calculate total: 129
13.
A tablet costs 350 dollars with 8.25% tax. What is the total price?
Answer: 378.88
Total = , which rounds to 378.88 dollars.
14.
You buy three items: a book for 15 dollars, a toy for 25 dollars, and a game for 45 dollars. If the tax rate is 6%, what is the total cost for all items?
Answer: 90.10
1. Calculate the subtotal: 85
2. Calculate the tax: 5.10
3. Calculate the total: 90.10
15.
Store A sells a jacket for 80 dollars with 5% tax. Store B sells the same jacket for 75 dollars with 10% tax. Which store has a lower total price?
1. a)Store B (82.50 dollars)
2. b)They cost the same
3. c)Store A (84 dollars)
4. d)Cannot be determined
Answer: Store B (82.50 dollars)
Store A: . Store B: . Store B is cheaper by 1.50 dollars despite having a higher tax rate!
16.
A family dinner costs 95 dollars before tax. The tax rate is 8% and they also want to leave a 15% tip on the pre-tax amount. What is the total bill?
Answer: 116.85
1. Calculate the tax: 7.60
2. Calculate the tip: 14.25
3. Calculate total: 116.85
17.
You have 100 dollars to spend. If the tax rate is 10%, what is the maximum price before tax that you can afford?
Answer: 90.91
If Price 1.10 = 100, then Price = 100 / 1.10 = 90.91 dollars (rounded). This is working backwards from the total.