Sales tax is a percentage of the amount charged by the government for the product. It is an indirect tax in the supply chain. The different types of sales tax are wholesale, retail, manufacturers, VAT. The students of grade 10 can learn more about the sales tax in a bill from here. The example problems seen on this page are prepared by our math experts. So, practice the problems and relate them to the real-time problems.
Sales Tax in a Bill
When you buy something from a shop or a market, you will pay sales tax for the products along with the price for the product. You can see the sales tax in a bill when you go to a restaurant or supermarket. The sales tax is different for different states. Let us discuss deeply regarding the sales tax in a bill from this section.
Types of Sales Tax
The different types of sales tax are retail, wholesale, manufacturers, use tax, value-added tax.
Retail Sales Tax: The tax charged on the sale of the retail goods is directly paid by the customer.
Wholesale Tax: Wholesale tax is charged to the individuals who deal with the sale of manufactured products.
Manufacturers tax: The tax collected on the manufacturers of the definite goods and services.
Use tax: Use tax is a tax collected by the government on the consumer for the products that are purchased without sales tax.
VAT: Value added tax is charged on all the sales by different governments.
Also, Check:
Formula to Calculate Sales Tax
The formula to find the sales tax in a bill is as follows,
- S = P(1 + r/100)
- Sales tax at rate = P × r/100
where,
r = rate of the sales
P = printed price
Sales Tax in a Bill Question and Answers
Example 1.
Sita bought the following fruits from a shop.
Fruit Quantity Rate
Apple 4 $100
Orange 2 dz $60
Banana 5 dz $20 per dozen
Grapes 6 kg $80 per
If the sales tax is charged at the rate of 7% on all these fruits, find the total amount paid by sita.
Solution:
Cost of 4 apples = $ (100 x 4) = $ 400
Cost of 2 dozen Oranges = $ (60 x 2) = $ 120
Cost of 5 dozen bananas = $(20 x 5) = $ 100
Cost of 6 kg of graphs = $(80 x 6) = $ 480
Therefore, the total cost of all fruits = $ 400 + $ 120 + $ 100 + $ 480 = $ 1100
We know that
Sales tax at rate = P × r/100
Therefore, sales tax at the rate of 7% = $ (1100 x 7/100) = $ 77
Total amount sita paid = total cost of all fruits + sales tax
Therefore, total amount paid by sita = $ 1100 + $ 77 = $ 1177
Therefore sales tax = $ 1177
Example 2.
Rajesh bought the following groceries from a general store.
Groceries Marked price Rate of Sales tax
Sugar $240 $17
Corn flour $310 $10
Coffee power $620 $24
Oil $824 $32
Solution:
For suger the marked price P = $ 240
The rate of sales tax = 17%, therefore r = 17
Therefore, S = P(1 + r/100)
S = $ 240 × (1 + 17/100)
= $ 240 × (117/100)
= $ 280.8
For corn flour, the marked price P = $310, The rate of sales tax = 10%, therefore r = 10
Therefore, S = P(1 + r/100)
S = $ 310 × (1 + 10/100)
= $ 310 × (110/100)
= $ 341
For coffee power the marked price P = $ 620
The rate of sales tax = 24 % therefore r = 24
We know that
S = P(1 + r/100)
S = $ 620 × (1 + 24/100)
S = $ 620 × 124/100
= 2488
For oil the marked price P = $ 824,
The rate of sales tax = 32%, therefore r = 32
Therefore, S = P(1 + r/100)
S = $ 824 × (1 + 32/100)
= $ 824 × (132/100)
= $ 1021.76
Therefore, the total amount paid = $ 280.8 + $ 341 + $ 1488 + $ 1021.76 = $ 3131.56
The total amount of sales tax paid = ($ 280 – $ 240) ($ 341 – $ 310) + ($ 2488 – $ 620) + ($ 1021.76 – $ 824)
= $ 40 + $ 29 + $ 1868 + $197.76
= $ 2134.76
Therefore sales tax = $ 2134.76
Example 3.
Rohan bought the following chocolates from a shop.
Chocolate Quantity Rate
Dairy milk 3 $130
Five stars 6 $60
Snickers 5 $245
If the sales tax is charged at the rate of 6% on all these chocolates, find the total amount paid by Rohan.
Solution:
Cost of 3 dairy milk = $ (130 x 3) = $ 390
Cost of 6 five star = $ (60 x 6) = $ 360
Cost of 5 Snickers = $(245 x 5) = $ 1225
Therefore, the total cost of all chocolates = $ 390 + $ 360 + $ 1225 = $ 1975
We know that
Sales tax at rate = P × r/100
Therefore, sales tax at the rate of 6% = $ (1225 x 6/100) = $ 73.5
Total amount Rohan paid = total cost of all chocolates + sales tax
Therefore, total amount paid by Rohan = $ 1975 + $ 73.5 = $ 2048.5
Therefore sales tax = $ 2048.5
Example 4.
Mike bought the following machines from a store.
Machines Marked price Rate of Sales tax
Washing
machine 640 7
Refrigerator 810 10
Vacuum cleaner 920 4
Find the total amount Mike had to pay for the items. How much did she pay as sales tax?
Solution:
For washing machine the marked price P = $ 640
The rate of sales tax = 7%, therefore r = 7
Therefore, S = P(1 + r/100)
S = 640 × (1 + 7/100)
= 640 × (107/100)
= 684.8
For refrigerator, the marked price P = 810 The rate of sales tax = 10%, therefore r = 10
Therefore, S = P(1 + r/100)
S = 810 × (1 + 10/100)
= 810 × (110/100)
= 891
For vacuum cleaner the marked price P = 920
The rate of sales tax = 4 % therefore r = 4
We know that
S = P(1 + r/100)
S = 820 × (1 + 4/100)
S = 620 × 104/100
= 644.8
Therefore, the total amount paid = 684.8 + 891 + 644.8 = 2220.6
The total amount of sales tax paid = (684.8 – 640) + (891 – 810) + (920 – 644.8)
= 48.8 + 81 + 275.2
= 405
Therefore sales tax = 405
Example 5.
Shena bought the following vegetables from a store.
Vegetables Marked price Rate of Sales tax
Tomato 136 2
Beans 482 3
Spinach 821 4
Find the total amount Shena had to pay for the items. How much did she pay as sales tax?
Solution:
For Tomato the marked price P = 136
The rate of sales tax = 2%, therefore r = 2
Therefore, S = P(1 + r/100)
S = 136 × (1 + 2/100)
= 136 × (102/100)
= 138.72
For beans the marked price P = 482 The rate of sales tax = 3%, therefore r = 3
Therefore, S = P(1 + r/100)
S = 482 × (1 + 3/100)
= 482 × (103/100)
= 496.48
For spinach the marked price P = 821
The rate of sales tax = 4 % therefore r = 4
We know that
S = P(1 + r/100)
S = 821 × (1 + 4/100)
S = 821 × 104/100
= 853.84
Therefore, the total amount paid = 138.72 + 496.48 + 853.84 = 1489.04
The total amount of sales tax paid = (138.72 – 136) + (496.48 – 482) + (853.84 – 821)
= 2.72 + 14.84 + 32.84
= 50.04
Therefore sales tax paid = 50.04
FAQs on Sales Tax in a Bill
1. What sales tax means?
A sales tax is an intake tax imposed by the government on the sale of goods and services.
2. How is tax calculated in a restaurant?
Multiply your sales tax rate by the sum total of all the taxable items sold during the month.
3. What is the difference between sales and use tax?
A sales tax is what the state calls tax collected by a merchant in-state. Use tax is what the state calls a tax collected and pardoned by what they deem a remote seller.