Question

A clothing store charges a 10% tax on each purchase. If a shopper’s total before tax is $63, how much is the tax? Explain how you got your answer

Answer 1

To calculate the sales tax that is included in a company's receipts, divide the total amount received (for the items that are subject to sales tax) by "1 + the sales tax rate". In other words, if the sales tax rate is 6%, divide the sales taxable receipts by 1.06.