LESSON

How do you calculate sales tax and income tax?

Calculating Sales and Income Tax13.1

ADDITIONAL EXAMPLE 1

The sales tax rate is 6.25%. Complete the table to find the total cost of the purchase, including tax.

ADDITIONAL EXAMPLE 2

Novak’s monthly gross pay is $9,075. Federal withholding is 17.95%. His deductions for Social Security and for Medicare are $381.15 and $131.59. What is Novak’s net pay? $6,933.30

ADDITIONAL EXAMPLE 3

After deductions, Thea has a taxable income of $31,286. She paid a total of $4,185 in federal withholding. Find the tax due on Thea’s income. Will she have to pay an additional amount or will she get a refund?

$4,266; she has to pay an additional $81.

13.1 LESSON QUIZ7.13.A

The table shows items a soccer coach bought. The sales tax rate is 7%.

Find the total cost for each item.1.

Soccer balls: $192.54; Portable nets: $331.25; Speed rings: $37.97

The table shows items a soccer coach bought. The sales tax rate is 7%.

Find the total amount the coach spent on all the items.

2.$561.76

Find each of the deductions.3.

Federal withholding: $1,355.94; Social Security: $340.20; Medicare: $117.45

Allie’s monthly gross pay is $8,100. Federal withholding is 16.74% of her gross pay. The Social Security deduction is 4.2% and the Medicare deduction is 1.45% of her gross pay.

Find Allie’s net pay.4. $6,286.41

After deductions, Ray has a taxable income of $32,747. He paid a total of $4,595 in federal withholding. Find the tax due on Ray’s income. Will he have to pay an additional amount, or will he get a refund?

5.

$4,484; he will get a refund of $111.

How do you calculate sales tax and income tax?

Sample answer:Multiply the amount to be taxed by the tax rate.