1. Basic Math Skills Lesson 10: Sales Tax p. 150-151

2. Definitions  Sales tax: money paid as tax when you buy an item  Tax rate: the percent charged as tax

3. Sales Tax  Most states charge a sales tax on items a consumer buys. The consumer pays this tax. The tax rate is a percent of the price to be added to the price. With sales tax, you round any part of a cent up instead of to the nearest cent.

4. Example  A poster costs $10.90. Tax rate 5%. Tax: $10.90 x.05 = $0.545 rounded up to $0.55 Price with tax: $10.90 + $0.55 = $11.45