# Calculating Sales and Income Tax

## Presentation on theme: "Calculating Sales and Income Tax"— Presentation transcript:

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

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

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

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.

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

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

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

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.

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