Money Basics
Shopping
Sales tax
It's good to know how much sales tax you will be paying on goods and services because it determines the total price. Many cities and states collect sales tax to cover various expenses.
Sales tax is determined by finding a percentage of the purchase price. This percentage is called the tax rate.
If the tax rate is 6 percent (6/100) and you buy a $12 item, calculate the sales tax like this:
- 12 times 6/100 equals
- Convert 6/100 into a decimal: .06
- Multiply 12 by 0.06 to get 0.72
- At a tax rate of 6 percent, the sales tax on a $12 item is 72 cents.
If you need help calculating with decimals, visit our self-paced Decimals tutorial in our Math section.
