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Prices Involving Sales Tax

Determine the sum of a number and one or more percentages of the number.

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Prices Involving Sales Tax
Credit: AForestFrolic
Source: https://www.flickr.com/photos/stampinmom/4511812812/
License: CC BY-NC 3.0

Joan goes to the mall to buy her mom a birthday present. She has $40 to spend. She decides to buy her mom a sweater that costs $35. She picks up a small bracelet that costs $2 for her and goes to the register. Before she reaches the register, she remembers that there is a 9% sales tax. Will Joan be able to buy both items?

In this concept, you will learn to calculate the sales tax.

Calculating Sales Tax

A discount is an amount that is deducted from the original sale price. A sales tax is a percentage of the sales price of an item that is added to a purchase. Most states have a sales tax.

In Maine, the sales tax is 5.5%. If you purchase a book for $25, you will pay $25 plus the sales tax of 5.5%. Find the cost of buying the book in Maine.

First, find the amount of sales tax for a $25 book. Find 5.5% of $25. 5.5% is also 0.055. Multiply $25 by 0.055.

\begin{align*}25 \times 0.055 = 1.375\end{align*}

Remember, dollars are rounded to the hundredths place. The sales tax is $1.38. Next, add the sales tax to the original price.

\begin{align*}25 + 1.38 = 26.38\end{align*}

The total price for the book, including the sales tax, is $26.38.

Examples

Example 1

Earlier, you were given a problem about Joan at the mall.

She wants to buy a $35 sweater and a $2 bracelet, but only has $40. To find out if she has enough, she needs to find the sum of the items and the sales tax.

First, add the cost of the sweater and the bracelet.

\begin{align*}35 + 2 = 37\end{align*}

Next, find the sales tax for both items. Find 9% of $37. 9% is also 0.09. Multiply $37 by 0.09.

\begin{align*}37 \times 0.09 = 3.33\end{align*}

The sales tax is $3.33. Next, add the sales tax to the cost of the items.

\begin{align*}37 + 3.33 = 40.33\end{align*}

The total price is $40.33. Joan will not have enough for both.

Example 2

Find the total cost including the sales tax.

Kelly and Jack bought tickets to the opera. Each ticket cost $45.00 and there was an 8% sales tax on the total order. How much did Kelly and Jack spend for their opera tickets?

First, find the total cost of the tickets. Each ticket cost $45 and they bought 2 tickets.

\begin{align*}45 \times 2 = 90\end{align*}

Two tickets cost $90. Next, find the amount of sales tax for the two tickets. Find 8% of $90. 8% is also 0.08. Multiply $90 by 0.08.

\begin{align*}90 \times 0.08 = 7.20\end{align*}

The sales tax is $7.20. Then, add the sales tax to the cost of the tickets.

\begin{align*}90 + 7.20 = 97.20\end{align*}

Kelly and Jack paid $97.20 for two tickets to the opera.

Example 3

What would you pay for a $35.00 book if the sales tax is 5%?

First, find the amount of sales tax for a $35 book. Find 5% of $35. 5% is also 0.05. Multiply $35 by 0.05.

\begin{align*}35 \times 0.05 = 1.75\end{align*}

The sales tax is $1.75. Next add the sales tax to the cost of the book.

\begin{align*}35 + 1.75 = 36.75\end{align*}

The total price of the book is $36.75.

Example 4

What would you pay for a $99.00 a night hotel room if the sales tax is 7%?

First, find the amount of sales tax for $99. Find 7% of $99. 7% is also 0.07. Multiply $99 by 0.07.

\begin{align*}99 \times 0.07 = 6.93\end{align*}

The sales tax is $6.93. Next add the sales tax to the cost of the book.

\begin{align*}99 + 6.93 = 105.93\end{align*}

The total price of the book is $105.93.

Example 5

What is the cost of a $42.50 item with a 2% sales tax?

First, find the amount of sales tax for $42.50 item. Find 2% of $42.50. 2% is also 0.02. Multiply $42.50 by 0.02.

\begin{align*}42.50 \times 0.02 = 0.85\end{align*}

The sales tax is $0.85. Next, add the sales tax to the cost of the item.

\begin{align*}42.50 + 0.85 = 43.35\end{align*}

The total price of the book is $43.35.

Review

Find the total cost if the sales tax is 4%.

  1. Total: $56.75
  2. Total: $43.25
  3. Total: $65.00
  4. Total: $25.50
  5. Total: $18.75
  6. Total: $59.00
  7. Total: $21.50
  8. Total: $44.50
  9. Total: $125.50
  10. Total: $430.00
  11. Total: $890.50
  12. Total: $998.35
  13. Total: $2,356.75
  14. Total: $3005.50
  15. Total: $5678.25

Review (Answers)

To see the Review answers, open this PDF file and look for section 8.19. 

Resources

Vocabulary

Discount

When a product is discounted, the price is reduced. The discount is the difference between the original and reduced prices.

Percent

Percent means out of 100. It is a quantity written with a % sign.

Proportion

A proportion is an equation that shows two equivalent ratios.

Sales Tax

Sales tax is a small percentage of the sales price of a purchase, collected to support government services.

Image Attributions

  1. [1]^ Credit: AForestFrolic; Source: https://www.flickr.com/photos/stampinmom/4511812812/; License: CC BY-NC 3.0

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