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Texas Sales Tax: Rates, Calculator, Who Pays

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Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

While Texas doesn’t have an individual income tax , it does have a state sales and use tax on goods and services. Here’s what you can expect if you’re making a purchase in Texas.

Texas state sales tax rate

The state sales tax in Texas is 6.25%. Local tax can’t exceed 2%, which means that 8.25% is the maximum combined sales tax that can be collected in Texas.

The local tax amount generally depends on the seller’s place of business — such as a store or an office — if they have one. Different rules apply for sellers shipping orders to customers, whether in-state or out of state, depending on where the order is fulfilled.

Calculate Texas state sales tax

Who pays tx sales tax.

Customers pay the Texas sales tax, which is calculated by sellers and service providers, during the sale.

For example, if you buy a $10 T-shirt in Austin, Texas, you’ll see a state tax rate of 6.25% and a local tax rate of 2% on the receipt, bringing the total to $10.83.

If you bought a good or service that’s taxable in Texas but didn’t pay sales tax at the time of purchase, you’ll owe Texas use tax instead. Individuals who don’t have a Texas Sales and Use Tax permit can pay this to the Texas Comptroller’s office and report it with Form 01-156 .

What items are subject to Texas sales tax?

Taxable items in Texas include certain food items, such as soft drinks and candy, beer and wine, and prepared foods [0] Comptroller Texas . GROCERY AND CONVENIENCE STORES . Accessed Feb 23, 2024. View all sources . Almost all retail sales, leases, rentals of most goods, as well as taxable services, are subject to Texas sales tax.

There are 17 categories of taxable services in Texas, including amusement services (think concerts, carnivals and sporting events), cable television services, laundry services and more [0] Comptroller Texas . Taxable Services . Accessed Feb 23, 2024. View all sources . There are also industry-specific sales and use taxes, such as telecommunication services, tobacco and alcohol, and insurance taxes.

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What is exempt from Texas sales tax?

Most groceries, over-the-counter drugs and medicine, as well as feminine hygiene and menstrual products are exempt from Texas sales tax.

Certain nonprofit and governmental organizations may be exempt from paying sales tax, but they will need to apply for exemption from the comptroller’s office and be approved before making purchases. The exceptions are federal and Texas government entities, which are automatically granted exemptions [0] Texas Comptroller . Nonprofits and Exempt Organizations - Purchases and Sales . Accessed Feb 23, 2024. View all sources .

Individuals who buy items to directly donate to some nonprofit organizations may also be able to claim a sales tax exemption in Texas. There are certain requirements, and not every nonprofit qualifies, but the first step is to provide Form 01-339, Texas Sales and Use Tax Exemption Certification to the seller.

Who collects TX sales tax?

Sellers calculate and collect Texas sales tax for the items or services they sell. In Texas, permitted sales taxpayers can claim a 0.5% discount on the amount they’ve reported and paid on time, as well as an additional 1.25% if prepaying sales tax.

Sellers also can face penalties for reporting and paying taxes late. Each report filed after the due date is assessed a $50 penalty. On top of that, for taxes paid between one and 30 days late, there is a 5% penalty, and anything more than 30 days late gets a 10% penalty [0] Texas Comptroller . Sales and Use Tax . Accessed Feb 23, 2024. View all sources .

Texas sales tax holiday

Texas has four sales tax holidays in 2024. Each one is dedicated to a specific purpose, such as emergency preparation or back-to-school shopping, and related items under a certain dollar amount can be purchased tax-free.

» MORE : See which other states have a sales tax holiday

Can you deduct TX sales tax?

It’s possible to deduct Texas sales tax from your federal income tax return if you itemize and take the SALT deduction . This deduction allows you to write off up to $10,000 worth of either state income taxes or state and local sales taxes paid throughout the year.

Taking the SALT deduction may not be a strategy that works for everyone. Consulting with a trusted tax expert, such as a CPA , or quality tax software can help you decide if it’s the best route for you.

» Ready to file? See our top picks for tax software

On a similar note...

how to solve sales tax problems

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Three Big Problems with Sales Taxes Today — and How to Fix Them

Sales tax A tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. rates are talked about frequently, but policymakers spend less time focused on sales tax base The tax base is the total amount of income, property, assets, consumption, transactions, or other economic activity subject to taxation by a tax authority. A narrow tax base is non-neutral and inefficient. A broad tax base reduces tax administration costs and allows more revenue to be raised at lower rates. s—the basket of transactions that the sales tax A sales tax is levied on retail sales of goods and services and, ideally, should apply to all final consumption with few exemptions . Many governments exempt goods like groceries; base broadening , such as including groceries, could keep rates lower. A sales tax should exempt business-to-business transactions which, when taxed, cause tax pyramiding . applies to in a given state. That’s a shame, because there are three big problems with sales tax bases today, and policymakers have an opportunity to fix these issues.

Public finance experts generally agree that a properly-structured retail sales tax should apply to all final consumption so that you have a broad base and can levy a low rate. However, in practice most states have sales taxes that fall short of this ideal on three counts:

  • They do not tax services
  • They exempt many final consumer goods that should be taxed
  • They tax business-to-business transactions that should be exempt

Let’s unpack each of these problems one by one.

Most states do not comprehensively tax services as an accident of history

The first sales tax was enacted in Mississippi in 1930 as a reaction to falling property tax A property tax is primarily levied on immovable property like land and buildings, as well as on tangible personal property that is movable, like vehicles and equipment. Property taxes are the single largest source of state and local revenue in the U.S. and help fund schools, roads, police, and other services. revenues during the Great Depression. At the time, the consumer economy was predominantly transactions of goods. As a result, when the drafters wrote the sales tax statute, it only applied to transactions of tangible personal property, the goods sector. Forty-four states and D.C. followed Mississippi in enacting sales taxes in the following decades, and all but three ( Hawaii , New Mexico , and South Dakota ) for the most part adopted a goods-only tax structure.

Sales Tax Adoption by State

This was a sufficiently broad base for a few decades, but since then the American economy has transformed to include far more services. Services now represent approximately two-thirds of consumption, and largely go untaxed by state sales taxes.

Percent of Total Personal Consumption Expenditures - Goods vs. Services

This has resulted in upward pressure on sales tax rates over time as the sales tax base continues to narrow and sales taxes bring in less revenue as a percentage of the economy. The proper solution is to broaden the sales tax base to include services, and use the revenue from that base broadening Base broadening is the expansion of the amount of economic activity subject to tax , usually by eliminating exemptions , exclusions, deductions , credits , and other preferences. Narrow tax bases are non-neutral , favoring one product or industry over another, and can undermine revenue stability. to lower the sales tax rate, or the rates of other more economically-damaging taxes.

Some states have moved in this direction relatively recently , but none in a comprehensive way that changes the default treatment of services. Most states still have a default of taxing all goods unless they have an enumerated exemption, and a default of taxing no services unless they are enumerated as taxable.

Most states exempt some final consumer transactions for political reasons

Frequently, it is argued that since some goods are “necessities,” they should be sales tax-free. In most cases this manifests itself as exemptions for particular goods like groceries, clothing, and medication.

These exemptions, while well-intentioned, have the effect of significantly narrowing the tax base, as groceries, clothing, and medication make up a large percentage of consumption, with groceries and clothing alone making up 10 percent of personal consumption expenditures in 2016, according to the Bureau of Economic Analysis.

While many argue that these exemptions are necessary to protect low-income individuals, these exemptions of course are enjoyed by anyone purchasing these products, even high-income individuals. A better, more targeted solution is to include these products in the sales tax with the interest of maintaining a broad tax base at heart, and then providing targeted relief to low-income individuals either through a credit on their income tax return, or through spending programs.

Many states do not fully exempt business inputs (which are not final consumption and should not be taxed)

While the previous two problems deal with the sales tax base being too narrow, this last one is an area where the sales tax base can be overly broad, taxing transactions that are not final consumption. In the process of making final goods and services, businesses will often buy raw materials from each other to create products. These business inputs, or business-to-business transactions, are not final consumption, and so should not be taxed by the sales tax.

When states do tax business inputs, the costs of those taxes cascade, or “pyramid” down the production chain and embed themselves in the final price of the consumer product. Consumers end up paying the tax in the form of higher prices — they just do so in a nontransparent way. The picture below shows how a carton of milk could be taxed multiple times throughout its production chain if business to business taxes are applied.

Taxing Business Inputs Results in Tax Pyramiding

Taxing business inputs disproportionately harms industries with long production chains, and consequently can encourage vertical integration for tax reasons even if it makes no business sense.

If states were to fix these three problems, they would have not only a broad-based but a “right-sized” sales tax system that taxes each dollar of consumption once and only once. This would result in stable revenue, and would allow for a low rate that brings in ample funding for government services.

For more on your state’s sales tax base, see the tables in the back of our latest State Business Tax Climate Index .

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August 29, 2014 by James Grennen Leave a Comment

The Most Common Sales Tax Problems & How to Avoid Them

The larger your business, the more revenue you probably earn. As your revenue increases, so do your tax responsibilities. While business owners have much on their plates, it’s important to remember state sales tax. Adherence to the rules and requirements means everything runs smoothly, but slip up and you may find yourself in trouble if you fail to learn how to solve sales tax problems . Here are 8 common sales tax problems you should avoid at all costs:

sales tax Problems

8 Common Sales Tax Problems:

Failing to collect sales tax., inadvertent misuse of sales tax money., intentional misuse of sales tax money., doing nothing., miscalculations., failing to file on time., nonprofit exemptions., online businesses., sales tax word problems.

It turns out elementary school word problems are actually useful in real life. If you are looking for answers on how to solve sales tax problems , it may be best to simply practice. Here are some sales tax word problems to get your mind going:

Your local dealership is selling a pickup truck for $18,995. The sales tax is 7{bf3da7fb6a4d0e0e3790d09a79b980fc065e33e2f3a2d49280f7e95b82f4982b}. What is the total price and what portion of that is sales tax? The total price is $20,324.65. The sales tax is $1,329.65. John purchased two pairs of blue jeans for $29 dollars each and one shirt for $12. The sales tax is 6.5{bf3da7fb6a4d0e0e3790d09a79b980fc065e33e2f3a2d49280f7e95b82f4982b}. How much did John owe and what portion is the business required to set aside for sales tax? The total price paid was $74.55. The business must set aside $4.55 in sales tax.

Maintain the integrity and reputation of your business with your state’s tax authority by using these 8 tips on how to solve sales tax problems.

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  • 6.3 Solve Sales Tax, Commission, and Discount Applications
  • Introduction
  • 1.1 Introduction to Whole Numbers
  • 1.2 Add Whole Numbers
  • 1.3 Subtract Whole Numbers
  • 1.4 Multiply Whole Numbers
  • 1.5 Divide Whole Numbers
  • Key Concepts
  • Review Exercises
  • Practice Test
  • Introduction to the Language of Algebra
  • 2.1 Use the Language of Algebra
  • 2.2 Evaluate, Simplify, and Translate Expressions
  • 2.3 Solving Equations Using the Subtraction and Addition Properties of Equality
  • 2.4 Find Multiples and Factors
  • 2.5 Prime Factorization and the Least Common Multiple
  • Introduction to Integers
  • 3.1 Introduction to Integers
  • 3.2 Add Integers
  • 3.3 Subtract Integers
  • 3.4 Multiply and Divide Integers
  • 3.5 Solve Equations Using Integers; The Division Property of Equality
  • Introduction to Fractions
  • 4.1 Visualize Fractions
  • 4.2 Multiply and Divide Fractions
  • 4.3 Multiply and Divide Mixed Numbers and Complex Fractions
  • 4.4 Add and Subtract Fractions with Common Denominators
  • 4.5 Add and Subtract Fractions with Different Denominators
  • 4.6 Add and Subtract Mixed Numbers
  • 4.7 Solve Equations with Fractions
  • Introduction to Decimals
  • 5.1 Decimals
  • 5.2 Decimal Operations
  • 5.3 Decimals and Fractions
  • 5.4 Solve Equations with Decimals
  • 5.5 Averages and Probability
  • 5.6 Ratios and Rate
  • 5.7 Simplify and Use Square Roots
  • Introduction to Percents
  • 6.1 Understand Percent
  • 6.2 Solve General Applications of Percent
  • 6.4 Solve Simple Interest Applications
  • 6.5 Solve Proportions and their Applications
  • Introduction to the Properties of Real Numbers
  • 7.1 Rational and Irrational Numbers
  • 7.2 Commutative and Associative Properties
  • 7.3 Distributive Property
  • 7.4 Properties of Identity, Inverses, and Zero
  • 7.5 Systems of Measurement
  • Introduction to Solving Linear Equations
  • 8.1 Solve Equations Using the Subtraction and Addition Properties of Equality
  • 8.2 Solve Equations Using the Division and Multiplication Properties of Equality
  • 8.3 Solve Equations with Variables and Constants on Both Sides
  • 8.4 Solve Equations with Fraction or Decimal Coefficients
  • 9.1 Use a Problem Solving Strategy
  • 9.2 Solve Money Applications
  • 9.3 Use Properties of Angles, Triangles, and the Pythagorean Theorem
  • 9.4 Use Properties of Rectangles, Triangles, and Trapezoids
  • 9.5 Solve Geometry Applications: Circles and Irregular Figures
  • 9.6 Solve Geometry Applications: Volume and Surface Area
  • 9.7 Solve a Formula for a Specific Variable
  • Introduction to Polynomials
  • 10.1 Add and Subtract Polynomials
  • 10.2 Use Multiplication Properties of Exponents
  • 10.3 Multiply Polynomials
  • 10.4 Divide Monomials
  • 10.5 Integer Exponents and Scientific Notation
  • 10.6 Introduction to Factoring Polynomials
  • 11.1 Use the Rectangular Coordinate System
  • 11.2 Graphing Linear Equations
  • 11.3 Graphing with Intercepts
  • 11.4 Understand Slope of a Line
  • A | Cumulative Review
  • B | Powers and Roots Tables
  • C | Geometric Formulas

Learning Objectives

By the end of this section, you will be able to:

  • Solve sales tax applications
  • Solve commission applications
  • Solve discount applications
  • Solve mark-up applications

Be Prepared 6.7

Before you get started, take this readiness quiz.

Solve 0.0875 ( 720 ) 0.0875 ( 720 ) through multiplication. If you missed this problem, review Example 5.17 .

Be Prepared 6.8

Solve 12.96 ÷ 0.04 12.96 ÷ 0.04 through division. If you missed this problem, review Example 5.22 .

Solve Sales Tax Applications

Sales tax and commissions are applications of percent in our everyday lives. To solve these applications, we will follow the same strategy we used in the section on decimal operations. We show it again here for easy reference.

  • Step 1. Identify what you are asked to find and choose a variable to represent it.
  • Step 2. Write a sentence that gives the information to find it.
  • Step 3. Translate the sentence into an equation.
  • Step 4. Solve the equation using good algebra techniques.
  • Step 5. Check the answer in the problem and make sure it makes sense.
  • Step 6. Write a complete sentence that answers the question.

Remember that whatever the application, once we write the sentence with the given information (Step 2), we can translate it to a percent equation and then solve it.

Do you pay a tax when you shop in your city or state? In many parts of the United States, sales tax is added to the purchase price of an item. See Figure 6.7 . The sales tax is determined by computing a percent of the purchase price.

To find the sales tax multiply the purchase price by the sales tax rate. Remember to convert the sales tax rate from a percent to a decimal number. Once the sales tax is calculated, it is added to the purchase price. The result is the total cost—this is what the customer pays.

The sales tax is a percent of the purchase price.

Example 6.25

Cathy bought a bicycle in Washington, where the sales tax rate was 6.5% 6.5% of the purchase price. What was

  • ⓐ the sales tax and
  • ⓑ the total cost of a bicycle if the purchase price of the bicycle was $392 ? $392 ?

Try It 6.49

Find ⓐ the sales tax and ⓑ the total cost: Alexandra bought a television set for $724 $724 in Boston, where the sales tax rate was 6.25% 6.25% of the purchase price.

Try It 6.50

Find ⓐ the sales tax and ⓑ the total cost: Kim bought a winter coat for $250 $250 in St. Louis, where the sales tax rate was 8.2% 8.2% of the purchase price.

Example 6.26

Evelyn bought a new smartphone for $499 $499 plus tax. She was surprised when she got the receipt and saw that the tax was $42.42 . $42.42 . What was the sales tax rate for this purchase?

Try It 6.51

Diego bought a new car for $26,525 . $26,525 . He was surprised that the dealer then added $2,387.25 . $2,387.25 . What was the sales tax rate for this purchase?

Try It 6.52

What is the sales tax rate if a $7,594 $7,594 purchase will have $569.55 $569.55 of sales tax added to it?

Solve Commission Applications

Sales people often receive a commission , or percent of total sales, for their sales. Their income may be just the commission they earn, or it may be their commission added to their hourly wages or salary. The commission they earn is calculated as a certain percent of the price of each item they sell. That percent is called the rate of commission .

A commission is a percentage of total sales as determined by the rate of commission.

To find the commission on a sale, multiply the rate of commission by the total sales. Just as we did for computing sales tax, remember to first convert the rate of commission from a percent to a decimal.

Example 6.27

Helene is a realtor. She receives 3% 3% commission when she sells a house. How much commission will she receive for selling a house that costs $260,000 ? $260,000 ?

Try It 6.53

Bob is a travel agent. He receives 7% 7% commission when he books a cruise for a customer. How much commission will he receive for booking a $3,900 $3,900 cruise?

Try It 6.54

Fernando receives 18% 18% commission when he makes a computer sale. How much commission will he receive for selling a computer for $2,190 ? $2,190 ?

Example 6.28

Rikki earned $87 $87 commission when she sold a $1,450 $1,450 stove. What rate of commission did she get?

Try It 6.55

Homer received $1,140 $1,140 commission when he sold a car for $28,500 . $28,500 . What rate of commission did he get?

Try It 6.56

Bernice earned $451 $451 commission when she sold an $8,200 $8,200 living room set. What rate of commission did she get?

Solve Discount Applications

Applications of discount are very common in retail settings Figure 6.8 . When you buy an item on sale, the original price of the item has been reduced by some dollar amount. The discount rate , usually given as a percent, is used to determine the amount of the discount. To determine the amount of discount , we multiply the discount rate by the original price. We summarize the discount model in the box below.

An amount of discount is a percent off the original price.

The sale price should always be less than the original price. In some cases, the amount of discount is a fixed dollar amount. Then we just find the sale price by subtracting the amount of discount from the original price.

Example 6.29

Jason bought a pair of sunglasses that were on sale for $10 $10 off. The original price of the sunglasses was $39 . $39 . What was the sale price of the sunglasses?

Try It 6.57

Marta bought a dishwasher that was on sale for $75 $75 off. The original price of the dishwasher was $525 . $525 . What was the sale price of the dishwasher?

Try It 6.58

Orlando bought a pair of shoes that was on sale for $30 $30 off. The original price of the shoes was $112 . $112 . What was the sale price of the shoes?

In Example 6.29 , the amount of discount was a set amount, $10 . $10 . In Example 6.30 the discount is given as a percent of the original price.

Example 6.30

Elise bought a dress that was discounted 35% 35% off of the original price of $140 . $140 . What was ⓐ the amount of discount and ⓑ the sale price of the dress?

ⓐ Before beginning, you may find it helpful to organize the information in a list. Original price = $140 Discount rate = 35% Amount of discount = ?

ⓑ Original price = $140 Amount of discount = $49 Sale price = ?

Try It 6.59

Find ⓐ the amount of discount and ⓑ the sale price: Sergio bought a belt that was discounted 40% 40% from an original price of $29 . $29 .

Try It 6.60

Find ⓐ the amount of discount and ⓑ the sale price: Oscar bought a barbecue grill that was discounted 65% 65% from an original price of $395 . $395 .

There may be times when you buy something on sale and want to know the discount rate. The next example will show this case.

Example 6.31

Jeannette bought a swimsuit at a sale price of $13.95 . $13.95 . The original price of the swimsuit was $31 . $31 . Find the ⓐ amount of discount and ⓑ discount rate.

ⓐ Before beginning, you may find it helpful to organize the information in a list. Original price = $31 Amount of discount = ? Sale price = $13.95

ⓑ Before beginning, you may find it helpful to organize the information in a list. Original price = $31 Amount of discount = $17.05 Discount rate = ?

Try It 6.61

Find ⓐ the amount of discount and ⓑ the discount rate: Lena bought a kitchen table at the sale price of $375.20 . $375.20 . The original price of the table was $560 . $560 .

Try It 6.62

Find ⓐ the amount of discount and ⓑ the discount rate: Nick bought a multi-room air conditioner at a sale price of $340 . $340 . The original price of the air conditioner was $400 . $400 .

Solve Mark-up Applications

Applications of mark-up are very common in retail settings. The price a retailer pays for an item is called the wholesale price . The retailer then adds a mark-up to the wholesale price to get the list price , the price he sells the item for. The mark-up is usually calculated as a percent of the wholesale price. The percent is called the mark-up rate . To determine the amount of mark-up, multiply the mark-up rate by the wholesale price. We summarize the mark-up model in the box below.

The mark-up is the amount added to the wholesale price.

The list price should always be more than the wholesale price.

Example 6.32

Adam's art gallery bought a photograph at the wholesale price of $250 . $250 . Adam marked the price up 40% . 40% . Find the ⓐ amount of mark-up and ⓑ the list price of the photograph.

Try It 6.63

Jim's music store bought a guitar at wholesale price $1,200 . $1,200 . Jim marked the price up 50% . 50% . Find the ⓐ amount of mark-up and ⓑ the list price.

Try It 6.64

The Auto Resale Store bought Pablo's Toyota for $8,500 . $8,500 . They marked the price up 35% . 35% . Find the ⓐ amount of mark-up and ⓑ the list price.

Practice Makes Perfect

In the following exercises, find ⓐ the sales tax and ⓑ the total cost.

The cost of a pair of boots was $84 . $84 . The sales tax rate is 5% 5% of the purchase price.

The cost of a refrigerator was $1,242 . $1,242 . The sales tax rate is 8% 8% of the purchase price.

The cost of a microwave oven was $129 . $129 . The sales tax rate is 7.5% 7.5% of the purchase price.

The cost of a tablet computer is $350 . $350 . The sales tax rate is 8.5% 8.5% of the purchase price.

The cost of a file cabinet is $250 . $250 . The sales tax rate is 6.85% 6.85% of the purchase price.

The cost of a luggage set $400 . $400 . The sales tax rate is 5.75% 5.75% of the purchase price.

The cost of a 6-drawer 6-drawer dresser $1,199 . $1,199 . The sales tax rate is 5.125% 5.125% of the purchase price.

The cost of a sofa is $1,350 . $1,350 . The sales tax rate is 4.225% 4.225% of the purchase price.

In the following exercises, find the sales tax rate.

Shawna bought a mixer for $300 . $300 . The sales tax on the purchase was $19.50 . $19.50 .

Orphia bought a coffee table for $400 . $400 . The sales tax on the purchase was $38 . $38 .

Bopha bought a bedroom set for $3,600 . $3,600 . The sales tax on the purchase was $246.60 . $246.60 .

Ruth bought a washer and dryer set for $2,100 . $2,100 . The sales tax on the purchase was $152.25 . $152.25 .

In the following exercises, find the commission.

Christopher sold his dinette set for $225 $225 through an online site, which charged him 9% 9% of the selling price as commission. How much was the commission?

Michele rented a booth at a craft fair, which charged her 8% 8% commission on her sales. One day her total sales were $193 . $193 . How much was the commission?

Farrah works in a jewelry store and receives 12% 12% commission when she makes a sale. How much commission will she receive for selling a $8,125 $8,125 ring?

Jamal works at a car dealership and receives 9% 9% commission when he sells a car. How much commission will he receive for selling a $32,575 $32,575 car?

Hector receives 17.5% 17.5% commission when he sells an insurance policy. How much commission will he receive for selling a policy for $4,910 ? $4,910 ?

Denise receives 10.5% 10.5% commission when she books a tour at the travel agency. How much commission will she receive for booking a tour with total cost $7,420 ? $7,420 ?

In the following exercises, find the rate of commission.

Dontay is a realtor and earned $11,250 $11,250 commission on the sale of a $375,000 $375,000 house. What is his rate of commission?

Nevaeh is a cruise specialist and earned $364 $364 commission after booking a cruise that cost $5,200 . $5,200 . What is her rate of commission?

As a waitress, Emily earned $420 $420 in tips on sales of $2,625 $2,625 last Saturday night. What was her rate of commission?

Alejandra earned $1,393.74 $1,393.74 commission on weekly sales of $15,486 $15,486 as a salesperson at the computer store. What is her rate of commission?

Maureen earned $7,052.50 $7,052.50 commission when she sold a $45,500 $45,500 car. What was the rate of commission?

Lucas earned $4,487.50 $4,487.50 commission when he brought a $35,900 $35,900 job to his office. What was the rate of commission?

In the following exercises, find the sale price.

Perla bought a cellphone that was on sale for $50 $50 off. The original price of the cellphone was $189 . $189 .

Sophie saw a dress she liked on sale for $15 $15 off. The original price of the dress was $96 . $96 .

Rick wants to buy a tool set with original price $165 . $165 . Next week the tool set will be on sale for $40 $40 off.

Angelo's store is having a sale on TV sets. One set, with an original price of $859 , $859 , is selling for $125 $125 off.

In the following exercises, find ⓐ the amount of discount and ⓑ the sale price.

Janelle bought a beach chair on sale at 60% 60% off. The original price was $44.95 $44.95

Errol bought a skateboard helmet on sale at 40% 40% off. The original price was $49.95 . $49.95 .

Kathy wants to buy a camera that lists for $389 . $389 . The camera is on sale with a 33% 33% discount.

Colleen bought a suit that was discounted 25% 25% from an original price of $245 . $245 .

Erys bought a treadmill on sale at 35% 35% off. The original price was $949.95 . $949.95 .

Jay bought a guitar on sale at 45% 45% off. The original price was $514.75 . $514.75 .

In the following exercises, find ⓐ the amount of discount and ⓑ the discount rate. (Round to the nearest tenth of a percent if needed.)

Larry and Donna bought a sofa at the sale price of $1,344 . $1,344 . The original price of the sofa was $1,920 . $1,920 .

Hiroshi bought a lawnmower at the sale price of $240 . $240 . The original price of the lawnmower is $300 . $300 .

Patty bought a baby stroller on sale for $301.75 . $301.75 . The original price of the stroller was $355. $355.

Bill found a book he wanted on sale for $20.80 . $20.80 . The original price of the book was $32 . $32 .

Nikki bought a patio set on sale for $480 . $480 . The original price was $850 . $850 .

Stella bought a dinette set on sale for $725 . $725 . The original price was $1,299 . $1,299 .

In the following exercises, find ⓐ the amount of the mark-up and ⓑ the list price.

Daria bought a bracelet at wholesale cost $16 $16 to sell in her handicraft store. She marked the price up 45% . 45% .

Regina bought a handmade quilt at wholesale cost $120 $120 to sell in her quilt store. She marked the price up 55% . 55% .

Tom paid $0.60 $0.60 a pound for tomatoes to sell at his produce store. He added a 33% 33% mark-up.

Flora paid her supplier $0.74 $0.74 a stem for roses to sell at her flower shop. She added an 85% 85% mark-up.

Alan bought a used bicycle for $115 . $115 . After re-conditioning it, he added 225% 225% mark-up and then advertised it for sale.

Michael bought a classic car for $8,500 . $8,500 . He restored it, then added 150% 150% mark-up before advertising it for sale.

Everyday Math

Coupons Yvonne can use two coupons for the same purchase at her favorite department store. One coupon gives her $20 $20 off and the other gives her 25% 25% off. She wants to buy a bedspread that sells for $195 . $195 .

  • ⓐ Calculate the discount price if Yvonne uses the $20 $20 coupon first and then takes 25% 25% off.
  • ⓑ Calculate the discount price if Yvonne uses the 25% 25% off coupon first and then uses the $20 $20 coupon.
  • ⓒ In which order should Yvonne use the coupons?

Cash Back Jason can buy a bag of dog food for $35 $35 at two different stores. One store offers 6% 6% cash back on the purchase plus $5 $5 off his next purchase. The other store offers 20% 20% cash back.

  • ⓐ Calculate the total savings from the first store, including the savings on the next purchase.
  • ⓑ Calculate the total savings from the second store.
  • ⓒ Which store should Jason buy the dog food from? Why?

Writing Exercises

Priam bought a jacket that was on sale for 40% 40% off. The original price of the jacket was $150 . $150 . While the sales clerk figured the price by calculating the amount of discount and then subtracting that amount from $150 , $150 , Priam found the price faster by calculating 60% 60% of $150 . $150 .

  • ⓐ Explain why Priam was correct.
  • ⓑ Will Priam's method work for any original price?

Roxy bought a scarf on sale for 50% 50% off. The original price of the scarf was $32.90 . $32.90 . Roxy claimed that the price she paid for the scarf was the same as the amount she saved. Was Roxy correct? Explain.

ⓐ After completing the exercises, use this checklist to evaluate your mastery of the objectives of this section.

ⓑ What does this checklist tell you about your mastery of this section? What steps will you take to improve?

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Course: 7th grade   >   Unit 2

  • Solving percent problems
  • Equivalent expressions with percent problems
  • Percent word problem: magic club
  • Percent problems

Percent word problems: tax and discount

  • Tax and tip word problems
  • Percent word problem: guavas
  • Discount, markup, and commission word problems
  • Multi-step ratio and percent problems

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Mathematics LibreTexts

6.4: Solve Sales Tax, Commission, and Discount Applications

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Learning Objectives

By the end of this section, you will be able to:

  • Solve sales tax applications
  • Solve commission applications
  • Solve discount applications
  • Solve mark-up applications

Be Prepared 6.7

Before you get started, take this readiness quiz.

Solve 0.0875 ( 720 ) 0.0875 ( 720 ) through multiplication. If you missed this problem, review Example 5.17.

Be Prepared 6.8

Solve 12.96 ÷ 0.04 12.96 ÷ 0.04 through division. If you missed this problem, review Example 5.22.

Solve Sales Tax Applications

Sales tax and commissions are applications of percent in our everyday lives. To solve these applications, we will follow the same strategy we used in the section on decimal operations. We show it again here for easy reference.

Solve an application

  • Step 1. Identify what you are asked to find and choose a variable to represent it.
  • Step 2. Write a sentence that gives the information to find it.
  • Step 3. Translate the sentence into an equation.
  • Step 4. Solve the equation using good algebra techniques.
  • Step 5. Check the answer in the problem and make sure it makes sense.
  • Step 6. Write a complete sentence that answers the question.

Remember that whatever the application, once we write the sentence with the given information (Step 2), we can translate it to a percent equation and then solve it.

Do you pay a tax when you shop in your city or state? In many parts of the United States, sales tax is added to the purchase price of an item. See Figure 6.7. The sales tax is determined by computing a percent of the purchase price.

To find the sales tax multiply the purchase price by the sales tax rate. Remember to convert the sales tax rate from a percent to a decimal number. Once the sales tax is calculated, it is added to the purchase price. The result is the total cost—this is what the customer pays.

The figure shows a restaurant check with sales tax

The sales tax is a percent of the purchase price.

Sales Tax = Tax Rate · Purchase Price Total Cost = Purchase Price + Sales Tax Sales Tax = Tax Rate · Purchase Price Total Cost = Purchase Price + Sales Tax

Example 6.25

Cathy bought a bicycle in Washington, where the sales tax rate was 6.5% 6.5% of the purchase price. What was

  • ⓐ the sales tax and
  • ⓑ the total cost of a bicycle if the purchase price of the bicycle was $392 ? $392 ?

Try It 6.49

Find ⓐ the sales tax and ⓑ the total cost: Alexandra bought a television set for $724 $724 in Boston, where the sales tax rate was 6.25% 6.25% of the purchase price.

Try It 6.50

Find ⓐ the sales tax and ⓑ the total cost: Kim bought a winter coat for $250 $250 in St. Louis, where the sales tax rate was 8.2% 8.2% of the purchase price.

Example 6.26

Evelyn bought a new smartphone for $499 $499 plus tax. She was surprised when she got the receipt and saw that the tax was $42.42 . $42.42 . What was the sales tax rate for this purchase?

Try It 6.51

Diego bought a new car for $26,525 . $26,525 . He was surprised that the dealer then added $2,387.25 . $2,387.25 . What was the sales tax rate for this purchase?

Try It 6.52

What is the sales tax rate if a $7,594 $7,594 purchase will have $569.55 $569.55 of sales tax added to it?

Solve Commission Applications

Sales people often receive a commission , or percent of total sales, for their sales. Their income may be just the commission they earn, or it may be their commission added to their hourly wages or salary. The commission they earn is calculated as a certain percent of the price of each item they sell. That percent is called the rate of commission .

A commission is a percentage of total sales as determined by the rate of commission.

commission = rate of commission · total sales commission = rate of commission · total sales

To find the commission on a sale, multiply the rate of commission by the total sales. Just as we did for computing sales tax, remember to first convert the rate of commission from a percent to a decimal.

Example 6.27

Helene is a realtor. She receives 3% 3% commission when she sells a house. How much commission will she receive for selling a house that costs $260,000 ? $260,000 ?

Try It 6.53

Bob is a travel agent. He receives 7% 7% commission when he books a cruise for a customer. How much commission will he receive for booking a $3,900 $3,900 cruise?

Try It 6.54

Fernando receives 18% 18% commission when he makes a computer sale. How much commission will he receive for selling a computer for $2,190 ? $2,190 ?

Example 6.28

Rikki earned $87 $87 commission when she sold a $1,450 $1,450 stove. What rate of commission did she get?

Try It 6.55

Homer received $1,140 $1,140 commission when he sold a car for $28,500 . $28,500 . What rate of commission did he get?

Try It 6.56

Bernice earned $451 $451 commission when she sold an $8,200 $8,200 living room set. What rate of commission did she get?

Solve Discount Applications

Applications of discount are very common in retail settings Figure 6.8. When you buy an item on sale, the original price of the item has been reduced by some dollar amount. The discount rate , usually given as a percent, is used to determine the amount of the discount. To determine the amount of discount , we multiply the discount rate by the original price. We summarize the discount model in the box below.

The figure shows a sale sign with a discount rate

An amount of discount is a percent off the original price.

amount of discount = discount rate · original price sale price = original price − discount amount of discount = discount rate · original price sale price = original price − discount

The sale price should always be less than the original price. In some cases, the amount of discount is a fixed dollar amount. Then we just find the sale price by subtracting the amount of discount from the original price.

Example 6.29

Jason bought a pair of sunglasses that were on sale for $10 $10 off. The original price of the sunglasses was $39 . $39 . What was the sale price of the sunglasses?

Try It 6.57

Marta bought a dishwasher that was on sale for $75 $75 off. The original price of the dishwasher was $525 . $525 . What was the sale price of the dishwasher?

Try It 6.58

Orlando bought a pair of shoes that was on sale for $30 $30 off. The original price of the shoes was $112 . $112 . What was the sale price of the shoes?

In Example 6.29, the amount of discount was a set amount, $10 . Example 6.30 the discount is given as a percent of the original price.

Example 6.30

Elise bought a dress that was discounted 35% 35% off of the original price of $140 . $140 . What was ⓐ the amount of discount and ⓑ the sale price of the dress?

ⓐ Before beginning, you may find it helpful to organize the information in a list. Original price = $140 Discount rate = 35% Amount of discount = ?

ⓑ Original price = $140 Amount of discount = $49 Sale price = ?

Try It 6.59

Find ⓐ the amount of discount and ⓑ the sale price: Sergio bought a belt that was discounted 40% 40% from an original price of $29 . $29 .

Try It 6.60

Find ⓐ the amount of discount and ⓑ the sale price: Oscar bought a barbecue grill that was discounted 65% 65% from an original price of $395 . $395 .

There may be times when you buy something on sale and want to know the discount rate. The next example will show this case.

Example 6.31

Jeannette bought a swimsuit at a sale price of $13.95 . $13.95 . The original price of the swimsuit was $31 . $31 . Find the ⓐ amount of discount and ⓑ discount rate.

ⓐ Before beginning, you may find it helpful to organize the information in a list. Original price = $31 Amount of discount = ? Sale price = $13.95

ⓑ Before beginning, you may find it helpful to organize the information in a list. Original price = $31 Amount of discount = $17.05 Discount rate = ?

Try It 6.61

Find ⓐ the amount of discount and ⓑ the discount rate: Lena bought a kitchen table at the sale price of $375.20 . $375.20 . The original price of the table was $560 . $560 .

Try It 6.62

Find ⓐ the amount of discount and ⓑ the discount rate: Nick bought a multi-room air conditioner at a sale price of $340 . $340 . The original price of the air conditioner was $400 . $400 .

Solve Mark-up Applications

Applications of mark-up are very common in retail settings. The price a retailer pays for an item is called the wholesale price . The retailer then adds a mark-up to the wholesale price to get the list price , the price he sells the item for. The mark-up is usually calculated as a percent of the wholesale price. The percent is called the mark-up rate . To determine the amount of mark-up, multiply the mark-up rate by the wholesale price. We summarize the mark-up model in the box below.

The mark-up is the amount added to the wholesale price.

amount of mark-up = mark-up rate · wholesale price list price = wholesale price + mark up amount of mark-up = mark-up rate · wholesale price list price = wholesale price + mark up

The list price should always be more than the wholesale price.

Example 6.32

Adam's art gallery bought a photograph at the wholesale price of $250 . $250 . Adam marked the price up 40% . 40% . Find the ⓐ amount of mark-up and ⓑ the list price of the photograph.

Try It 6.63

Jim's music store bought a guitar at wholesale price $1,200 . $1,200 . Jim marked the price up 50% . 50% . Find the ⓐ amount of mark-up and ⓑ the list price.

Try It 6.64

The Auto Resale Store bought Pablo's Toyota for $8,500 . $8,500 . They marked the price up 35% . 35% . Find the ⓐ amount of mark-up and ⓑ the list price.

Section 6.3 Exercises

Practice makes perfect.

In the following exercises, find ⓐ the sales tax and ⓑ the total cost.

The cost of a pair of boots was $84 . $84 . The sales tax rate is 5% 5% of the purchase price.

The cost of a refrigerator was $1,242 . $1,242 . The sales tax rate is 8% 8% of the purchase price.

The cost of a microwave oven was $129 . $129 . The sales tax rate is 7.5% 7.5% of the purchase price.

The cost of a tablet computer is $350 . $350 . The sales tax rate is 8.5% 8.5% of the purchase price.

The cost of a file cabinet is $250 . $250 . The sales tax rate is 6.85% 6.85% of the purchase price.

The cost of a luggage set $400 . $400 . The sales tax rate is 5.75% 5.75% of the purchase price.

The cost of a 6-drawer 6-drawer dresser $1,199 . $1,199 . The sales tax rate is 5.125% 5.125% of the purchase price.

The cost of a sofa is $1,350 . $1,350 . The sales tax rate is 4.225% 4.225% of the purchase price.

In the following exercises, find the sales tax rate.

Shawna bought a mixer for $300 . $300 . The sales tax on the purchase was $19.50 . $19.50 .

Orphia bought a coffee table for $400 . $400 . The sales tax on the purchase was $38 . $38 .

Bopha bought a bedroom set for $3,600 . $3,600 . The sales tax on the purchase was $246.60 . $246.60 .

Ruth bought a washer and dryer set for $2,100 . $2,100 . The sales tax on the purchase was $152.25 . $152.25 .

In the following exercises, find the commission.

Christopher sold his dinette set for $225 $225 through an online site, which charged him 9% 9% of the selling price as commission. How much was the commission?

Michele rented a booth at a craft fair, which charged her 8% 8% commission on her sales. One day her total sales were $193 . $193 . How much was the commission?

Farrah works in a jewelry store and receives 12% 12% commission when she makes a sale. How much commission will she receive for selling a $8,125 $8,125 ring?

Jamal works at a car dealership and receives 9% 9% commission when he sells a car. How much commission will he receive for selling a $32,575 $32,575 car?

Hector receives 17.5% 17.5% commission when he sells an insurance policy. How much commission will he receive for selling a policy for $4,910 ? $4,910 ?

Denise receives 10.5% 10.5% commission when she books a tour at the travel agency. How much commission will she receive for booking a tour with total cost $7,420 ? $7,420 ?

In the following exercises, find the rate of commission.

Dontay is a realtor and earned $11,250 $11,250 commission on the sale of a $375,000 $375,000 house. What is his rate of commission?

Nevaeh is a cruise specialist and earned $364 $364 commission after booking a cruise that cost $5,200 . $5,200 . What is her rate of commission?

As a waitress, Emily earned $420 $420 in tips on sales of $2,625 $2,625 last Saturday night. What was her rate of commission?

Alejandra earned $1,393.74 $1,393.74 commission on weekly sales of $15,486 $15,486 as a salesperson at the computer store. What is her rate of commission?

Maureen earned $7,052.50 $7,052.50 commission when she sold a $45,500 $45,500 car. What was the rate of commission?

Lucas earned $4,487.50 $4,487.50 commission when he brought a $35,900 $35,900 job to his office. What was the rate of commission?

In the following exercises, find the sale price.

Perla bought a cellphone that was on sale for $50 $50 off. The original price of the cellphone was $189 . $189 .

Sophie saw a dress she liked on sale for $15 $15 off. The original price of the dress was $96 . $96 .

Rick wants to buy a tool set with original price $165 . $165 . Next week the tool set will be on sale for $40 $40 off.

Angelo's store is having a sale on TV sets. One set, with an original price of $859 , $859 , is selling for $125 $125 off.

In the following exercises, find ⓐ the amount of discount and ⓑ the sale price.

Janelle bought a beach chair on sale at 60% 60% off. The original price was $44.95 $44.95

Errol bought a skateboard helmet on sale at 40% 40% off. The original price was $49.95 . $49.95 .

Kathy wants to buy a camera that lists for $389 . $389 . The camera is on sale with a 33% 33% discount.

Colleen bought a suit that was discounted 25% 25% from an original price of $245 . $245 .

Erys bought a treadmill on sale at 35% 35% off. The original price was $949.95 . $949.95 .

Jay bought a guitar on sale at 45% 45% off. The original price was $514.75 . $514.75 .

In the following exercises, find ⓐ the amount of discount and ⓑ the discount rate. (Round to the nearest tenth of a percent if needed.)

Larry and Donna bought a sofa at the sale price of $1,344 . $1,344 . The original price of the sofa was $1,920 . $1,920 .

Hiroshi bought a lawnmower at the sale price of $240 . $240 . The original price of the lawnmower is $300 . $300 .

Patty bought a baby stroller on sale for $301.75 . $301.75 . The original price of the stroller was $355. $355.

Bill found a book he wanted on sale for $20.80 . $20.80 . The original price of the book was $32 . $32 .

Nikki bought a patio set on sale for $480 . $480 . The original price was $850 . $850 .

Stella bought a dinette set on sale for $725 . $725 . The original price was $1,299 . $1,299 .

In the following exercises, find ⓐ the amount of the mark-up and ⓑ the list price.

Daria bought a bracelet at wholesale cost $16 $16 to sell in her handicraft store. She marked the price up 45% . 45% .

Regina bought a handmade quilt at wholesale cost $120 $120 to sell in her quilt store. She marked the price up 55% . 55% .

Tom paid $0.60 $0.60 a pound for tomatoes to sell at his produce store. He added a 33% 33% mark-up.

Flora paid her supplier $0.74 $0.74 a stem for roses to sell at her flower shop. She added an 85% 85% mark-up.

Alan bought a used bicycle for $115 . $115 . After re-conditioning it, he added 225% 225% mark-up and then advertised it for sale.

Michael bought a classic car for $8,500 . $8,500 . He restored it, then added 150% 150% mark-up before advertising it for sale.

Everyday Math

Coupons Yvonne can use two coupons for the same purchase at her favorite department store. One coupon gives her $20 $20 off and the other gives her 25% 25% off. She wants to buy a bedspread that sells for $195 . $195 .

  • ⓐ Calculate the discount price if Yvonne uses the $20 $20 coupon first and then takes 25% 25% off.
  • ⓑ Calculate the discount price if Yvonne uses the 25% 25% off coupon first and then uses the $20 $20 coupon.
  • ⓒ In which order should Yvonne use the coupons?

Cash Back Jason can buy a bag of dog food for $35 $35 at two different stores. One store offers 6% 6% cash back on the purchase plus $5 $5 off his next purchase. The other store offers 20% 20% cash back.

  • ⓐ Calculate the total savings from the first store, including the savings on the next purchase.
  • ⓑ Calculate the total savings from the second store.
  • ⓒ Which store should Jason buy the dog food from? Why?

Writing Exercises

Priam bought a jacket that was on sale for 40% 40% off. The original price of the jacket was $150 . $150 . While the sales clerk figured the price by calculating the amount of discount and then subtracting that amount from $150 , $150 , Priam found the price faster by calculating 60% 60% of $150 . $150 .

  • ⓐ Explain why Priam was correct.
  • ⓑ Will Priam's method work for any original price?

Roxy bought a scarf on sale for 50% 50% off. The original price of the scarf was $32.90 . $32.90 . Roxy claimed that the price she paid for the scarf was the same as the amount she saved. Was Roxy correct? Explain.

ⓐ After completing the exercises, use this checklist to evaluate your mastery of the objectives of this section.

.

ⓑ What does this checklist tell you about your mastery of this section? What steps will you take to improve?

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How to Find Discount, Tax, and Tip? (+FREE Worksheet!)

Learn how to use the percent formula to solve Discount, Tax, and Tip problems in a few simple and easy steps.

How to Find Discount, Tax, and Tip? (+FREE Worksheet!)

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Step-by-step guide to solving Discount, Tax, and Tip problems

  • Discount \(=\) Multiply the regular price by the rate of discount
  • Selling price \(=\) original price \(–\) discount
  • Tax: To find tax, multiply the tax rate by the taxable amount (income, property value, etc.)
  • Tip: To find the tip, multiply the rate by the selling price.

Discount, Tax and Tip – Example 1:

With a \(20\%\) discount, Ella was able to save \($40\) on a dress. What was the original price of the dress?

\(20\%\) of \(x= 40, \frac{20}{100} \ × \ x=40, x=\frac{100 \ × \ 40}{ 20}=200 \)

The original price of the dress was \($200\).

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Discount, tax and tip – example 2:.

Sophia purchased a sofa for \($340.00\). The sofa is regularly priced at \($400.00\). What was the percent discount Sophia received on the sofa?

Use this formula: \(\color{ blue }{ percent = Part ÷ base }\). \(=340 \ ÷ \ 400=0.85=85\%\) Therefore, the discount is: \(100\% \ – \ 85\%=15\%\)

Discount, Tax, and Tip – Example 3:

Ella and her friends went out to eat at a restaurant. If their bill was \($60.00\) and they gave their server a \(15\%\) tip, how much did they pay altogether?

The tip was \(15\%\). To solve \(15\%\) of \(60\) use this formula: \(\color{ blue }{part =\frac{percent}{100} \ × \ whole }\). \(part =\frac{15}{100} \ × \ 60 →\) \(part=\frac{15 \ × \ 60}{100}→\) \(part=\frac{90}{10}→\) \(part\) \(=9 \)

The final amount they paid: \($60.00\) \(+\) \($9.00\) = \($69.00\)

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Discount, tax and tip – example 4:.

The selling price of a table is \($400\) and the tax rate is \(6\%\) . What is the final price of the table?

Find tax amount: \(6\%\) of \(400\)

To solve \(6\%\) of \(400\) use this formula: \(\color{ blue }{part =\frac{percent}{100} \ × \ whole }\). \(part\) \(=\frac{6}{100} \ × \ 400 →\) \(part\) \(=\frac{6 \ × \ 400}{100}→\) \(part=\frac{240}{10}→\) \(part=24 \)

The final price of the table is: \($400\) \(+\) \($24\) = \($424\)

Exercises for Solving Discount, Tax and Tip

Find the selling price of each item..

  • Original price of a computer: \($200\) Tax: \(10\%\), Selling price:
  • Original price of a computer: \($400\) Tax: \(5\%\), Selling price:
  • Original price of a computer: \($500\) Tax: \(8\%\), Selling price:
  • Original price of a computer: \($800\) Tax: \(25\%\), Selling price:
  • Original price of a computer: \($250\) Tax: \(10\%\), Selling price:
  • Original price of a computer: \($1,500\) Tax: \(15\%\), Selling price:

Download Discount, Tax and Tip Worksheet

  • \(\color{blue}{$220.00}\)
  • \(\color{blue}{$420.00}\)
  • \(\color{blue}{$540.00}\)
  • \(\color{blue}{$1,000.00}\)
  • \(\color{blue}{$275.00}\)
  • \(\color{blue}{$1,725.00}\)

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Tax resolution: how to solve your tax problems.

By Top Tax Staff | Jan 20, 2022 10:00:00 AM | Tax Resolution , Tax Tips and Help

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Tax problems create anxiety and a wish to bury your head in the sand, hoping everything will disappear. You don’t have to feel that way. You have many options to resolve your tax issues and solve any tax problem you might have.

From paying off your tax debt in installments to delaying collection or paying less than you owe, you can get out from under the IRS spotlight. Keep reading to learn how.

What Is Tax Resolution?

Tax resolution means evaluating your tax situation and putting together a defense against anything Uncle Sam throws at you. Hiring someone to help places a buffer between you and the IRS, easing some of the tension that comes with tax problems.

The sooner you engage assistance, the better off you are. If the IRS believes you or your business haven't reported enough income, underpaid your taxes, or didn't file a return, it takes action. You may be audited. The IRS may place liens and levies against your property or wages. If the problem goes on too long, the agency can even seize your property.

If you are doing something illegal, like tax evasion or fraud, the IRS can commence criminal proceedings.

If you have tax problems, seek help before they grow too big . Here's how to get started.

Get Current and Compliant

The first step in solving any tax problem is to get current on all your tax filings. If your primary concern is that you haven't filed one or more returns , get them filed. The IRS charges a penalty for failure to file, so you should file a return every year even if you can’t pay in full .

The next step is to settle your back taxes . The IRS charges penalties for failure to pay, and your tax debt also accumulates interest until your taxes are completely paid. Penalties and interest make your tax burden continue to grow until you take care of it.

Settling your back taxes doesn’t necessarily mean paying the entire debt at once. You have other options that can make paying the federal government more affordable if still unpalatable. 

HAVEN'T FILED TAXES IN YEARS?  DOWNLOAD OUR GUIDE TO BACK TAXES AND SETTLING WITH THE IRS »

How to Resolve Tax Problems

As we mentioned above, the IRS has several methods to get their money or "encourage" you to pay your tax debt. 

Stop Wage Garnishment

The IRS can garnish your wages, which is a form of levy. The IRS files a wage garnishment with your employer, requiring them to withhold additional funds from your paycheck to send to the IRS. Wage garnishment creates more work for the employer and is definitely not a good look for you.

Working with the IRS to establish a payment plan can stop the wage garnishment . 

The IRS has another tool in the box called a tax lien. The agency places a lien against your personal property or real estate to force you to pay taxes. With the lien in place, you cannot sell the property , and it can be difficult to refinance your mortgage or get any other type of loan.

If you don't pay, the IRS eventually seizes your property and sells it to pay taxes plus the seizure and sale. 

The Fresh Start Program increased the threshold for liens and made it easier for a lien to be withdrawn after taxes are paid. It also allows lien withdrawal once a taxpayer enters into a direct payment agreement, so you don’t have to pay the entire amount to get out from under the lien.

Appeal Tax Levies

Besides placing liens against your property, the IRS can levy your bank accounts . The bank must enforce the levy. However, you should receive plenty of notice before the levy begins. You have time to contest or appeal the notice to prevent the levy.

If the levy has already begun, you can get it released before the funds are removed. 

Pay Your Taxes

If you owe more than you can pay all at once, you can enroll in a payment plan . Once you set up a qualified payment plan with monthly installments, the IRS often releases liens and removes other obstacles from your financial picture.

Depending on how much you owe, you can choose between a short-term and long-term payment plan. The IRS accepts many forms of payment, including debit and credit cards, money orders, checks, and direct debit from your account. 

To have a lien released, you may be required to use direct debit. Otherwise, a tax professional can help you put together a payment plan you can afford using the best payment method for your needs.

What if you know you can never pay off your entire tax debt? It isn’t easy to do, but you can go to the IRS with an Offer in Compromise. You offer to pay a portion of your tax debt. If the IRS accepts, you don’t have to pay the rest.

If you can’t pay at all right now while maintaining a reasonable standard of living, you can apply for Currently Not Collectible. The IRS abates your taxes until you can pay. So, if you lost your job or became unable to work temporarily, you can file for a CNC.

Whether or not you are divorced, you can be shielded from their tax problems if you file taxes separately from your spouse. If you have an ex in the picture who made some poor tax choices, you aren’t on the hook for them. 

Most taxpayers need expert advice to make it through an audit. Not everyone who receives an audit notice has a tax problem; the IRS does have randomly selected tax returns for audit. Other times, you may have made an error, or something else triggers an audit .

Top Tax Defenders can help you prepare and work through the audit . Many audits are done through the mail, but if you must speak with a revenue agent, having someone with you who understands tax law is of great benefit.

DO YOU NEED IRS TAX HELP?  SCHEDULE A FREE CONSULTATION WITH OUR TAX EXPERTS »

Once you have your tax debt settled or have a plan to pay it off, a tax resolution service provider can help you plan better for the future. When you start a new business or have a significant life change, you should consider any ramifications to your tax profile. 

If you have committed fraud or tax evasion, you should get an experienced tax attorney on your side. These are serious crimes with severe penalties, and you need a lawyer who knows the ins and outs of tax law.

Tax resolution services cover a wide array of tax circumstances, even if you don't have tax problems. If you are facing issues with the IRS, there are experts who can help you untangle the mess and get you back on track.

Contact Top Tax Defenders today to start tackling your tax problems.

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Appendix A: Applications

Solving sales tax applications, learning outcomes.

  • Calculate total purchase price given sales tax and price
  • Calculate sales tax given tax rate and purchase price
  • Calculate tax rate given sale price and amount of sales tax

Sales tax and commissions are applications of percent in our everyday lives. To solve these applications, we will follow the same strategy we used in the section on decimal operations. We show it again here for easy reference.

Solve an application

  • Identify what you are asked to find and choose a variable to represent it.
  • Write a sentence that gives the information to find it.
  • Translate the sentence into an equation.
  • Solve the equation using good algebra techniques.
  • Check the answer in the problem and make sure it makes sense.
  • Write a complete sentence that answers the question.

Remember that whatever the application, once we write the sentence with the given information (Step 2), we can translate it to a percent equation and then solve it.

Do you pay a tax when you shop in your city or state? In many parts of the United States, sales tax is added to the purchase price of an item. See the image below.

The sales tax is determined by computing a percent of the purchase price.

To find the sales tax multiply the purchase price by the sales tax rate. Remember to convert the sales tax rate from a percent to a decimal number. Once the sales tax is calculated, it is added to the purchase price. The result is the total cost—this is what the customer pays.

The sales tax is calculated as a percent of the purchase price.

The figure shows a restaurant check with sales tax

The sales tax is a percent of the purchase price.

[latex]\begin{array}{ccc}\hfill \text{Sales Tax}& =& \text{Tax Rate}\cdot \text{Purchase Price}\hfill \\ \hfill \text{Total Cost}& =& \text{Purchase Price}+\text{Sales Tax}\hfill \end{array}[/latex]

Cathy bought a bicycle in Washington, where the sales tax rate was [latex]\text{6.5%}[/latex] of the purchase price. What was

ⓐ the sales tax and ⓑ the total cost of a bicycle if the purchase price of the bicycle was [latex]\text{\$392}?[/latex]

In the following video we show an example of how to calculate the sales tax on an item given the tax rate. Note that it does not include calculating the total cost of the item after tax.

Evelyn bought a new smartphone for [latex]\text{\$499}[/latex] plus tax. She was surprised when she got the receipt and saw that the tax was [latex]\text{\$42.42}[/latex]. What was the sales tax rate for this purchase?

Watch this video to see another example of how to find the tax rate for an item given the price after tax, and the original price.

  • Question ID 146746, 146750. Authored by : LumenLearning. License : CC BY: Attribution
  • Ex: Find the Sale Tax Percentage. Authored by : James Sousa (Mathispower4u.com). Located at : https://youtu.be/7cb1lsfU5Rw . License : CC BY: Attribution
  • Ex: Percent Application - Sales Tax Given Percent (Equation and Proportion). Authored by : James Sousa (Mathispower4u.com). Located at : https://youtu.be/D7B5IzbRS-8 . License : CC BY: Attribution
  • Prealgebra. Provided by : OpenStax. License : CC BY: Attribution . License Terms : Download for free at http://cnx.org/contents/[email protected]

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Would Your Students Be Surprised by Sales Tax? Try This Lesson

Practical percentages!

Flay lay of 'Calculating Sales Tax' lesson

Adventures in Math is a free educational program to help teach math skills and financial responsibility. Find interactive games, flash cards, lessons by grade level, family resources, and at-home activities for students in grades K-8.

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I think we can all remember the first time we went to the store to buy something with our own money only to find out we didn’t have enough because of tax. You can head this experience off at the pass—and give your class some great real-world practice with percentages — with this “Calculating Sales Tax” lesson for grade 6-8 students. It’s all part of our Adventures in Math resource center !

What’s in the “Calculating Sales Tax” lesson?

This lesson kicks off by activating prior knowledge  and showing students a sample receipt. You’ll also explain how states use the money generated. After demonstrating how to calculate sales tax from different states, invite students to practice on their own using the “Figure Out the Sales Tax!” activity sheet.

  • Develop an understanding of personal financial literacy, including budgeting, spending, saving, and charitable giving.
  • Solve problems using the four operations with whole numbers and decimals to hundredths.
  • Use proportional relationships to solve multi-step ratio and percent problems.
  • Solve problems involving ratios, rates, and percentages, including multi-step problems that use percent increase and percent decrease, and financial literacy problems.

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Sales Tax Worksheets

There's nothing too taxing about our printable sales tax worksheets! Teeming with exercises like finding the sales tax, calculating the original price, and solving sales tax word problems, our resources have stupendous practice in store for students in grade 6, grade 7, and grade 8. The pdf tools also let them get used to percent application through receipts and discounts. Help them excel in sales tax using our free worksheets and prepare to face the world head-on!

Finding Sales Tax

Finding Sales Tax

When you buy an item that is taxed, not only do you pay the cost of the item, you also pay the sales tax. Find the sales tax and calculate the total cost of the items using these 3-part printable worksheets!

  • Download the set

Finding the Original Price

Finding the Original Price

If the sale price is $460 and the sales tax rate is 4%, what is the original price? All there's to do is to substitute the values in the appropriate formula and proceed to solve for the missing values.

Finding Sales Tax | Word Problems

Finding Sales Tax | Word Problems

The 6th grade and 7th grade students are sure to love our sales tax word problems! Find the sales tax amount, given the tax percent. Also calculate the total amount in scenarios dedicated to sales taxes.

Finding the Original Price | Word Problems

Finding the Original Price | Word Problems

Get a thorough practice in finding the original price using the selling price and tax percent. Our refreshing word problems are bursting with scenarios where the task is to find the original price.

Receipts

Complete the sales receipts in these pdf sales tax worksheets by filling the purchase prices, given the sales tax rate, original prices, and the quantity. Fill in the total amount after adding the sales tax of each item.

Discount Worksheets

Discount Worksheets

What buying heart can discount despise? Customers, including the ones in the 7th grade and 8th grade, crave for discounts! Abounding in bargains, our printable worksheets help calculate price reductions.

(30 Worksheets)

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How To Solve Sales Tax Problems? (TOP 5 Tips)

The sales tax is determined by computing a percent of the purchase price. To find the sales tax multiply the purchase price by the sales tax rate . Remember to convert the sales tax rate from a percent to a decimal number. Once the sales tax is calculated, it is added to the purchase price.

What is the formula for calculating sales tax?

Multiply the cost of an item or service by the sales tax in order to find out the total cost. The equation looks like this: Item or service cost x sales tax (in decimal form) = total sales tax. Add the total sales tax to the Item or service cost to get your total cost.

How do I calculate sales tax manually?

The formula for calculating the sales tax on a good or service is: selling price x sales tax rate, and when calculating the total cost of a purchase, the formula is: total sale amount = selling price + sales tax.

Which is an example of a sales tax?

Sales tax is an additional amount of money you pay based on a percentage of the selling price of goods and services that are purchased. For example, if you purchase a new television for $400 and live in an area where the sales tax is 7%, you would pay $28 in sales tax. Your total bill would be $428.

How do you solve for sales?

Sales revenue is generated by multiplying the number of a product sold by the sales amount using the formula: Sales Revenue = Units Sold x Sales Price.

How are sales taxes collected?

The sales tax is collected from the buyer by the seller, who then forwards it on to the state. As a businessperson, you are the seller, so it’s your responsibility to collect, report and pay sales tax on most everything sold to a customer in a state where your business has a physical presence.

What is a sales tax in math?

sales tax. • a tax that is added to the price of particular goods and services, usually as a percentage of the purchase price.

How do you calculate cost of sales and sales?

The cost of sales is calculated as beginning inventory + purchases – ending inventory. The cost of sales does not include any general and administrative expenses.

How do you calculate sales revenue?

Sales revenue is calculated by multiplying the number of products or services sold by the price per unit.

How do you calculate gross sales tax?

To figure out the gross amount less the sales tax, divide the receipts by 1 plus the sales tax rate. So, if the sales tax rate is 7 percent, divide the total amount of the receipts by 1.07. For example, suppose that your total amount of sales receipts including a 7 percent sales tax is $52,500.

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Sacramento Bee

Community activists are taking charge in Folsom to solve the city’s budget problem | Opinion

B ecause a majority of the Folsom City Council seems incapable of resolving the city’s looming structural budget deficit, some long-standing citizens are circulating a solution - a “special” one-cent sales tax initiative.

There is nothing particularly special about Folsom’s financial predicament. It is a version of the same challenge that many cities in the region have already confronted and addressed with a local sales tax increase. It is Folsom’s unique political ecosystem, one that both distrusts funding government while loving its community, that is generating a very Folsom solution.

Any sales tax proposal that happens to make it on the fall ballot would be a great local investment. There is a structural fiscal problem, inadequate future revenues to pay for future costs, that is begging for a solution.

Inaction would be a self-inflicted wound for one of California’s premiere exurbs.

That the city council doesn’t appear to have the votes to do anything achievable demonstrates political dysfunction on the council and the wall of questions about any new tax in fiscally conservative Folsom.

“The general sentiment is that we just don’t want to give government more money,” said Robert Goss, the former director of the city’s parks and recreation department who is among the leaders of the sales tax drive. “But the same residents are willing to pay for more service or better service.”

So how does Folsom somehow sustain the city’s services without giving the government more discretionary money?

A “special” sales tax.

This is going to take some explanation. It involves Howard Jarvis and cannabis.

In California, a “special tax” tells voters exactly how the money will be spent. Thanks to the tax crusader Jarvis and his infamous Proposition 13 initiative of 1978, a special tax proposed by government has been hard to pass, long requiring a two-thirds supermajority.

A “general tax” allows the government to spend the money however it wants. Paradoxically, this has been easier to pass, only a bare majority is required.

Many cities in the region have proposed general sales tax increases in recent years to help meet local needs and succeeded. They include Galt , Elk Grove , Rancho Cordova , Sacramento and Roseville as noted examples. Their respective city councils all described the need. And the voters responded.

And then there is Folsom.

A city council supermajority placed a half-cent sales tax on the ballot in 2018. And then it went down to a spectacular defeat .

“It didn’t have a campaign budget,” Goss said.

Translation: City leadership failed to make a case.

To this day, a general sales tax increase in Folsom, the tried and true way to raise local revenues everywhere else, has all the local appeal of a communicable disease.

The solution? A special tax that is now easier to pass.

Why easier? Some upstart cannabis businesses in the Southern California city of Upland a few years back wanted to tax themselves to get licenses. The tax was approved by a bare majority. The businesses argued to the State Supreme Court that a bare majority was enough under all of California’s anti-tax laws. Howard Jarvis back in 1978 was specifically targeting taxes proposed by governments. This cannabis tax was proposed by “citizens” via the initiative process.

The high court agreed with the weed businesses. Ever since private interests have enjoyed a powerful new tool to get a local tax passed.

Meanwhile, at Folsom City Hall, which has failed to grapple with the structural budget problem since that 2018 sales tax failure, the Council does not appear to have the votes to do anything.

At a notable October meeting, Councilwoman Anna Rohrbough summed it up best.

“Throwing money at a problem will make us feel good for a while, but it doesn’t solve the bigger issue,” she said near the beginning of lengthy comments. Later, she said, “I’m not a denier that we don’t need more revenue….not just the police department, not just the fire department, every single department.”

It was an argument perfectly suited for a general sales tax increase.

Which she opposes.

The City Council is scheduled to discuss sales tax proposals Tuesday. It would take four of the five council members to put any proposal on the ballot in November. Only three of them in October could agree on how to discuss the matter this month. The math looks bleak for a breakthrough.

Meanwhile, Goss and his fellow Folsom long-timers have organized through a group known as Folsom Takes Action . It drafted a one-cent sales tax proposal. At Red Bus Brewing Company on a mid-December night, they and 150 supporters launched a signature-gathering campaign that must enlist by April a tenth of the city’s voters, about 5,500 valid signatures in all.

The special tax directs that all new revenues be spent on six popular categories, including police, fire and economic development. None can be spent on greater pensions for city employees.

However, if a citizen’s initiative were passed, it would come with an ironic twist because of the limitations on how the money could be spent. Ultimately, increasing the number of police and firefighters is the responsibility of the same city council that won’t lead on this issue.

The sales tax would generate an estimated $29 million towards a general fund budget that is now about $108 million. The council will have full discretion to spend the overwhelming majority of city funds. Citizens would have done the heavy lifting of getting an initiative passed and dealing with the politics of a tax increase in a town opposed to them. But once passed, in charge is the same council majority (I see at least one leader in this crowd).

Folsom is an inviting community for a reason - this council’s predecessors got things more right than wrong. Investing in Folsom’s future shouldn’t be this hard.

©2024 The Sacramento Bee. Visit sacbee.com. Distributed by Tribune Content Agency, LLC.

Sacramento

Proposed state law would give new homebuyers better idea what their property taxes will be

how to solve sales tax problems

Brevard County Property Appraiser Dana Blickley says it's the biggest complaint she and other appraisers in Florida receive: New homeowners get sticker shock when they get their tax bills, and find out their property taxes are much higher than the tax paid by the previous owner.

That's because of " Save Our Homes," which caps how much a Florida homestead's assessed value can increase each year to the lesser of 3% or the rate of inflation.

"Tax estimator" bills under consideration in the Florida Legislature would require disclosure of estimated post-sale property tax bills.

"We'd love to get it across the goal line this year," said Pinellas County Property Appraiser Mike Twitty — who is helping spearhead the effort as legislative chair of the Property Appraisers' Association of Florida.

Here's are details about the issue and the proposed legislation:

What's the problem the Florida Legislature is trying to solve?

Property appraisers say that 11 years of positive value growth in the Florida real estate market has resulted in the largest Save Our Homes cap benefits since the start of Save Our Homes in 1995.

That's good for the longtime owners of a home, whose property taxes typically are not rising as fast as their home's value.

But this is resulting in the largest "cap resets" ever experienced by buyers of Florida residential real estate after a house is sold, especially when the prior owner received the benefit of homestead exemption and the Save Our Homes cap for many years.

After the house is sold, property appraisers are required to reset the capped assessed value to the market value of the home, which will be the basis of the new owner's property taxes.

Boost from new construction: Brevard's new construction hitting tax rolls totals $1.55 billion, up 21.8% from year ago

Impact of school tax: New voter-approved Brevard school tax triggers sticker shock for some homeowners

How big is the problem?

New buyers typically face dramatically increased property taxes, in comparison with the previous owner.

In Brevard County, for example, Blickley said there were 6,770 homestead properties that were sold in 2022. The average taxes for those properties was $2,031 for the 2022 tax roll for the previous owner, and the same properties have an average taxes of $4,652 for the 2023 tax roll for the new owner.

Who is affected the most?

Blickley said the increase has the biggest impact on homebuyers moving to Florida from another state, as well as first-time homebuyers. Floridians who move their primary residence from one home they own in Florida to another often are eligible for what's known as "portability," which, in effect, enables them to transfer the benefits of the Save Our Homes cap on assessed value increases from their old home to their new home.

What would the legislation do?

House Bill 295 and Senate Bill 380 would require online listings of residential property to include a property tax estimator tool, which calculates the property tax that would be due on the property at current rates.

It also would prohibits printed listing materials and social media posts produced by real estate sales agents from including the current owner's property taxes.

How would the legislation help homebuyers?

Blickley says the bills would increase transparency and consumer protection.

Property appraisers believe this legislation would go a long way to better informing new buyers of their future property tax obligations, allowing them time to prepare, rather than blindsiding them.

What is the status of the bills?

The Senate and House bills have been making their way through the legislative committee process.

However, Twitty says he believes the measure has only a 50-50 chance of becoming law this year. And that's only if the proposal becomes part of a larger tax package the Florida Legislature will be considering. He believes it's too late in the two-month session scheduled to end on March 8 for the proposal to move forward as a stand-alone bill.

Has there been much organized opposition to the bill?

Florida Rep. Tyler Sirois, R-Merritt Island, who chairs the House Regulatory Reform and Economic Development Subcommittee, said he has heard no such organized opposition from the real estate industry.

But Twitty says, behind the scenes, the Florida Association of Realtors and Zillow have expressed concerns about technical issues of some of the bill's provisions that he is trying to work through with those entities and the bill's sponsors, potentially through amendments to the measure.

Dave Berman is business editor at  FLORIDA TODAY.  Contact Berman at  [email protected] , on X at  @bydaveberman  and on Facebook at  www.facebook.com/dave.berman.54

IMAGES

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COMMENTS

  1. How to resolve common sales tax issues

    To remove the sales tax item from your customers using the Customer Contact List report: Sales tax line item does not appear when printing invoices Quick Tip: In order for Sales Tax to print as an individual line item on an Invoice there must be a description in the description field of the Sales Tax item in the Item List.

  2. How to Calculate Sales Tax

    Need help with calculating sales tax and total cost? You're in the right place!Whether you're just starting...

  3. Texas Sales Tax: Rates, Calculator, Who Pays

    In Texas, the state sales tax is 6.25%, but local taxes of up to 2% can also be tacked onto purchases. ... Solving tax issues. Federal income tax calculator. View all taxes. Tax credits and ...

  4. Sales Tax

    Solution: ($2.79)* (0.05) = $0.1395. Rounded to the nearest cent the sales tax is $0.14. Answer: The sales tax is $0.14 and the total cost is $2.79 + $0.14 = $2.93. Example 4: The price of a new car is $29,990. If the sales tax rate is 6.5%, then how much sales tax is being charged? What is the total cost for the car including tax?

  5. Sales Tax Calculator

    Solution First, convert tax percentage to a decimal tax rate = 7.25% / 100 = 0.0725 Then use the formula to calculate the total: total = price + (price x tax rate) = 1,500.00 + (1,500.00 x 0.0725) = 1,500.00 + 108.75 = 1,608.75 Where the tax amount is: $108.75 Or, use the alternate formula: total = price × (1 + tax rate) = 1,500.00 × (1 + 0.0725)

  6. Three Big Problems With the Sales Tax Today

    The proper solution is to broaden the sales tax base to include services, and use the revenue from that base broadening to lower the sales tax rate, or the rates of other more economically-damaging taxes. Some states have moved in this direction relatively recently, but none in a comprehensive way that changes the default treatment of services.

  7. 7 Common Tax Problems (With Solutions)

    2. Unpaid Taxes. Millions of taxpayers filed their tax returns, owed additional taxes, and didn't pay by the deadline. When you have unpaid taxes, you're hit with a 0.5% penalty for every month the amount isn't paid in full. On top of this, the IRS will charge interest on the balance you owe.

  8. 6.3: Solve Sales Tax, Commission, and Discount Applications

    Step 5. Check the answer in the problem and make sure it makes sense. Step 6. Write a complete sentence that answers the question. Remember that whatever the application, once we write the sentence with the given information (Step 2), we can translate it to a percent equation and then solve it.

  9. The Most Common Sales Tax Problems & How to Avoid Them

    Miscalculations. While all business owners should have a basic understanding of finance and accounting, it isn't always the owner's expertise. This means errors are easy to come by when dealing with sales tax. One solution is to run numbers twice through two different tools. Failing to File on Time. Something as straightforward as

  10. Resolve tax disputes

    Taxpayer Advocate Service (TAS) - This free service helps you resolve tax problems. Get help with delayed or undelivered refunds, assistance if you are unable to pay your taxes, and more. Find a local taxpayer advocate in your area. Low-Income Taxpayer Clinics (LITCs) - LITCs represent people in disputes with the IRS.

  11. 6.3 Solve Sales Tax, Commission, and Discount Applications

    Step 1. Identify what you are asked to find and choose a variable to represent it. Step 2. Write a sentence that gives the information to find it. Step 3. Translate the sentence into an equation. Step 4. Solve the equation using good algebra techniques. Step 5. Check the answer in the problem and make sure it makes sense. Step 6.

  12. Percent word problems: tax and discount (video)

    Sal solves percent word problems involving tax, tip, and discounts. Questions Tips & Thanks Want to join the conversation? Sort by: Top Voted Elonsrz45 6 years ago Admission to the zoo is $30. With student ID admission is $24. How much is the discount? • 5 comments ( 24 votes) Upvote Flag Sai Mallampalli 5 years ago

  13. 6.4: Solve Sales Tax, Commission, and Discount Applications

    Learn how to solve problems involving sales tax, commission, and discount using percent formulas and strategies. This section covers various applications of percent in everyday situations, such as calculating the final price, the commission rate, or the discount amount. Examples and exercises are provided to help you master these skills.

  14. Introduction to Solving Sales Tax, Commission, and Discount

    The same skills Janet can use to solve her problem can also help you figure out problems involving sales tax, discounts, and mark-ups. Let's explore these real-life applications of percentages in this section. Before you get started in this module, try a few practice problems and review prior concepts.

  15. How to Find Discount, Tax, and Tip? (+FREE Worksheet!)

    Solution: Use this formula: \ (\color { blue } { percent = Part ÷ base }\). \ (=340 \ ÷ \ 400=0.85=85\%\) Therefore, the discount is: \ (100\% \ - \ 85\%=15\%\) Discount, Tax, and Tip - Example 3: Ella and her friends went out to eat at a restaurant.

  16. Percent Word Problems

    This math video tutorial provides a basic introduction into percent word problems. It explains how to calculate the total price after sales tax has been add...

  17. Tax Resolution: How to Solve Your Tax Problems

    Get Current and Compliant. The first step in solving any tax problem is to get current on all your tax filings. If your primary concern is that you haven't filed one or more returns, get them filed. The IRS charges a penalty for failure to file, so you should file a return every year even if you can't pay in full.

  18. Solving Problems involving Sales Tax, Commission, Discount and Interest

    Solution: Since we are looking for the sales tax rate, we will solve the following proportion. p 140 = 100 1750 1750 p = 14000 1750 p 14000 = 1750 1750 p = 8 Thus, the sales tax rate is 8%. Commission: When you work for a salary, you receive the same amount of money each week or month.

  19. Solving Sales Tax Applications

    Solution try it Find 1) the sales tax and 2) the total cost. Round your answers to the nearest cent. Juliana bought a television set for $1171 in Boston, where the sales tax rate was 8.4% of the purchase price. 1) sales tax = $

  20. Sales Tax: A Lesson on Understanding and Calculating Sales Tax

    Solve problems involving ratios, rates, and percentages, including multi-step problems that use percent increase and percent decrease, and financial literacy problems. With this "Calculating Sales Tax" lesson, grade 6-8 students explore the concept of sales tax and why where you live affects them.

  21. Percent Problems involving Taxes (with videos, worksheets, solutions

    It includes 4 examples. Solving Percent Word Problems - Sales Tax Percent word problem. Find final price given a percent sales tax? How to solve a percentage of change problem Try the free Mathway calculator and problem solver below to practice various math topics.

  22. Sales Tax Worksheets

    Finding Sales Tax | Word Problems The 6th grade and 7th grade students are sure to love our sales tax word problems! Find the sales tax amount, given the tax percent. Also calculate the total amount in scenarios dedicated to sales taxes. Download the set Finding the Original Price | Word Problems

  23. Sales Tax, Tax Rate, and Total Cost

    51 4.7K views 2 years ago Pre-Algebra In this video, I teach you how to find sales tax, tax rates, and total cost/price from different percentage word problems. ...more ...more It's cable...

  24. How To Solve Sales Tax Problems? (TOP 5 Tips)

    The formula for calculating the sales tax on a good or service is: selling price x sales tax rate, and when calculating the total cost of a purchase, the formula is: total sale amount = selling price + sales tax. Which is an example of a sales tax?

  25. Community activists are taking charge in Folsom to solve the city ...

    Meanwhile, at Folsom City Hall, which has failed to grapple with the structural budget problem since that 2018 sales tax failure, the Council does not appear to have the votes to do anything.

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    Here's are details about the issue and the proposed legislation: What's the problem the Florida Legislature is trying to solve? Property appraisers say that 11 years of positive value growth in ...