Answer:
Price before tax: $ 50.00
+ Sales tax (8.5%): $ 4.25
Total price including tax: $ 54.25
Explanation:
A sales tax is a tax that is levied on the purchase of goods and services. Except for Alaska, Delaware, Montana, New Hampshire, and Oregon, all states in the United States and the District of Columbia charge a state sales tax when you buy goods or pay for services. Alaska, like many other states, allows local governments to levy local sales taxes. Certain kinds of goods are exempt from sales tax in some states. In Massachusetts, for example, there is no sales tax on ordinary supermarket goods. There are also extra tax surcharges in several states. Restaurants and motels in the hospitality business sometimes levy a tax rate greater than the state sales tax rate. Expected sales tax rates and potential tax surcharge rates should be checked with your state and area.
Sales Tax Calculation Formulas
- Sales tax rate = sales tax percent / 100
- Sales tax = list price * sales tax rate
- Total price including tax = list price + sales tax, or
- Total price including tax = list price + (list price * sales tax rate), or
- Total price including tax = list price * ( 1 + sales tax rate)