1. Calculating Sales and Income Tax
13.1
Calculating Sales and Income Tax
How do you calculate sales tax and income tax?

2. ADDITIONAL EXAMPLE 1
The sales tax rate is 6.25%. Complete the table to find the total cost of the purchase, including tax.

3. ADDITIONAL EXAMPLE 2
Novak’s monthly gross pay is $9,075. Federal withholding is 17.95%. His deductions for Social Security and for Medicare are $ and $ What is Novak’s net pay?
$6,933.30

4. ADDITIONAL EXAMPLE 3
After deductions, Thea has a taxable income of $31,286. She paid a total of $4,185 in federal withholding. Find the tax due on Thea’s income. Will she have to pay an additional amount or will she get a refund?
$4,266; she has to pay an additional $81.

5. 13.1 LESSON QUIZ
7.13.A
The table shows items a soccer coach bought. The sales tax rate is 7%. 1.
Find the total cost for each item.
Soccer balls: $192.54; Portable nets: $331.25; Speed rings: $37.97

6. The table shows items a soccer coach bought. The sales tax rate is 7%.2.
Find the total amount the coach spent on all the items.
$561.76

7. Allie’s monthly gross pay is $8,100. Federal withholding is 16
Allie’s monthly gross pay is $8,100. Federal withholding is 16.74% of her gross pay. The Social Security deduction is 4.2% and the Medicare deduction is 1.45% of her gross pay. 3.
Find each of the deductions.
Federal withholding: $1,355.94; Social Security: $340.20; Medicare: $117.45 4.
Find Allie’s net pay.
$6,286.41

8. 5.
After deductions, Ray has a taxable income of $32,747. He paid a total of $4,595 in federal withholding. Find the tax due on Ray’s income. Will he have to pay an additional amount, or will he get a refund?
$4,484; he will get a refund of $111.

9. How do you calculate sales tax and income tax?
Sample answer:
Multiply the amount to be taxed by the tax rate.