How to calculate sales tax with percentages (Real-world examples)

📚 Quick Study Guide

• 💰 Sales Tax Basics: Sales tax is a percentage of the purchase price added to the total cost of goods or services.
• 🔢 Converting Percentage to Decimal: To work with percentages in calculations, convert them to decimals by dividing by 100. For example, 6% becomes 0.06.
• ➕ Calculating the Tax Amount: Multiply the price of the item by the sales tax rate (as a decimal). $Tax Amount = Price \times Tax Rate$.
• ✅ Calculating the Total Cost: Add the sales tax amount to the original price of the item. $Total Cost = Price + Tax Amount$.
• 💡 Real-World Example: If an item costs $50 and the sales tax is 8%, the tax amount is $50 \times 0.08 = $4, and the total cost is $50 + $4 = $54.
• 📝 Simplified Formula: You can also calculate the total cost directly using the formula: $Total Cost = Price \times (1 + Tax Rate)$.

Practice Quiz

1. What is the sales tax amount on a $75 item with a 6% sales tax?

   1. $4.00
   2. $4.50
   3. $5.00
   4. $5.50

2. A shirt costs $30, and the sales tax is 7%. What is the total cost of the shirt?

   1. $32.10
   2. $31.50
   3. $33.00
   4. $32.50

3. If the total cost of an item including 5% sales tax is $52.50, what was the original price of the item?

   1. $48.00
   2. $49.50
   3. $50.00
   4. $51.00

4. A store is having a 20% off sale, and then applies an 8% sales tax. If an item is originally priced at $100, what is the final cost?

   1. $84.00
   2. $86.40
   3. $80.00
   4. $82.00

5. Calculate the sales tax on a $1200 laptop with a sales tax of 8.25%.

   1. $90.00
   2. $95.00
   3. $99.00
   4. $100.50

6. You buy groceries for $65, and some items are not taxable. Only $45 of the groceries are taxable at a rate of 6%. What is the total amount you will pay?

   1. $66.70
   2. $67.70
   3. $68.70
   4. $69.70

7. A furniture store offers a couch for $800 plus a 9% sales tax. What is the final price of the couch?

   1. $862
   2. $872
   3. $882
   4. $892