Sales Tax Lesson 8-5

Sales tax and discount Sales tax - is an additional amount of money charged on items people buy. The total cost is the regular price plus the sales tax.

Sales Tax For example if: The combined sales tax rate for Durham, NC is 7.5%

Sales Tax: Finding the total cost. A pair of shoes cost $90, and the sales tax is 7.5%. What is the total cost of the shoes? First find the amount of sales tax. 7.5% of 90 = 7.5% x 90 $6.75 (This is the amount of tax being charged on the sale. So to find the total cost we add the tax to the original price.)

Sales Tax: Finding the total cost. Add the sales tax to the original price. 90 + $6.75 = $96.75 is the total cost of the shoes.

You Try! Remember two steps: 1. Find sales tax amount A set of golf balls sells for $20, and the sales tax is 5.75%. What is the total cost? Remember two steps: 1. Find sales tax amount 2. Add the sales tax amount to the original price to get total price.

Sales Tax A set of golf balls sells for $20, and the sales tax is 5.75%. What is the total cost? 5.75% of 20 5.75% x 20 = $1.15 $20 + $1.15 = $21.15 Add the sales tax to the original price.

Formula for Total Cost Multiply then Add

Sales Tax Your Turn: A video game system cost $130 and the sales tax is 6.5%. What is the total cost of the video game system?

Calculating sales tax from Total Subtract then Divide

Let check our worksheets Activity