Sales Tax
In this lesson we will learn how to solve math problems involving sales tax.
Final price = price before tax + sales tax
Sales tax = sales tax rate x price before tax
Example 1:
Donna wants to buy a dress that has a price tag of $85.00. If the sales tax rate is 8%, how much does she have to pay for the dress?
Adela wants to buy a dress that has a price tag of $85.00. If the sales tax rate is 8%, how much does she have to pay for the dress?
Solution
The sales tax = 8% of the price tag = 8% x $85.00 = 0.08 x 85.00 = $6.80
The final price = price before tax + sales tax = $85.00 + $6.80 = $91.80
Example 2:
If the price of a CD player before tax is $70, and the price after tax is $74.20, find the sales tax rate.
Solution:
The sales tax = Final price  price before tax = $74.20  $70.00 = $4.20
Sales tax = sales tax rate x price before tax
$4.20 = sales tax rate x $70
The sales tax rate = 4.20 / 70 = 0.06 = 6%
Return from the
Sales Tax
page to
Money Math
