Sales Tax

1. Sales Tax

2. Sales tax is calculated by finding the percent of the total purchase.

3. To find the amount of sales tax on a purchase, you multiply the tax rate by the sum of the prices of the items purchased.

4. You will first need to change the amount of tax from percent to the decimal equivalent.

5. When changing the tax rate from a percent to a decimal, first change the percent to a fraction with a denominator of 100. 6 % = = 0.06

6. Find the amount of tax on a purchase of $25.99 if the tax rate is 6 %. 6 % = = 0.06

7. 6 % = = 0.06 Using a calculator multiply $25.99 times 0.06 by entering the following into the calculator: 25.99 X 0.06 =

8. 25.99 X 0.06 = 1.5594 Use the calculator to round 1.5594 to the hundredths place by using the Fix function key.

9. The Fix function key selects the calculator’s rounding function and the 2 key tells the calculator how many decimal places to round the number in the calculator display.

10. With the 1.5594 in the calculator display press the Fix key and the 2 key. 1.5594 rounds to 1.56

11. To find the total amount of your purchase including tax, add the total amount of the items to be purchased to the calculated tax rate. $25.99 + 1.56 = $27.55

12. If the number displayed in the calculator is ever less than 2 decimal places in a money amount, use the Fix function key to display the number with 2 decimal places. $159.9 = $159.90

13. To find sales tax: price X tax rate = Sales Tax $8.55 X 0.05 = $0.43 To find total cost: price + sales tax = Total Cost $8.55 + $0.43 = $8.98

14. If the tax rate contains a decimal or a fraction, change the tax rate to a complex fraction and then to the equivalent decimal. 5.8 % = = 0.058

15. If the tax rate contains a decimal or a fraction, change the tax rate to a complex fraction and then to the equivalent decimal. % = = = 0.065