Question

A purchase costs $25.79 plus a tax of $1.29. Find the sales tax rate.

Answer 1

The sales tax rate is 5%.

Explanation:

To determine the sales tax rate if you already know the amount of tax being added to the purchase price, divide the amount of tax by the purchase price. In this example, divide $1.29 (amount of tax being added) by $25.79 (purchase price). When you do that, you will see that the answer is 0.0500, or 5%.