Presentation on theme: "Calculating Sales and Income Tax"— Presentation transcript:
1 Calculating Sales and Income Tax 13.1Calculating Sales and Income TaxHow do you calculate sales tax and income tax?
2 ADDITIONAL EXAMPLE 1The sales tax rate is 6.25%. Complete the table to find the total cost of the purchase, including tax.
3 ADDITIONAL EXAMPLE 2Novak’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 3After 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 QUIZ7.13.AThe 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: $117.454.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.