Percentages • Topic 7 of 8

Sales Tax

Sales tax is a percentage added to a purchase price. The tax amount is tax% × price, and the total paid is price × (1 + tax%). To find the tax rate, divide the tax by the pre-tax price and multiply by 100; to recover the pre-tax price from a total, divide by (1 + tax%). Because tax is added on top, the total is always more than the listed price. On the SAT, sales-tax problems test the same multiplier idea as markups — just remember the base is the pre-tax price and the answer asked for may be the tax, the total or the original price.

✅ Solved examples

1. A $50 purchase has 8% sales tax. What is the total?
50 × 1.08 = $54.
2. Tax of $3 is charged on a $60 item. What is the tax rate?
3 ÷ 60 = 0.05 = 5%.
3. The total with 10% tax is $99. What was the pre-tax price?
99 ÷ 1.10 = $90.
4. How much tax on a $200 item at 6%?
0.06 × 200 = $12.

✏️ Practice — try these, take hints as needed

1. A $80 purchase has 5% sales tax. What is the total?
Multiply by 1.05.
80 × 1.05.
Compute.
$84.
2. Tax of $6 is charged on a $120 item. What is the tax rate?
Divide tax by price.
6 ÷ 120.
× 100.
5%.
3. The total with 8% tax is $108. What was the pre-tax price?
Divide by 1.08.
108 ÷ 1.08.
Compute.
$100.
4. How much tax on a $150 item at 4%?
0.04 × 150.
Compute.
—
$6.
5. A $250 purchase has 7% tax. What is the total?
Multiply by 1.07.
250 × 1.07.
Compute.
$267.50.

📝 Topic test — 8 questions

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