Question

sales tax is a tax you pay to the government when you purchase certain goods and services.
it is written as a percentage and the amount can vary in different states,
provinces, and countries.

• in oregon, usa it is 0%
• in connecticut, usa it is 6.35%
• in florida, usa it is 6% with a 2% local tax in some areas, totaling

8%

• in british columbia, canada there is a 7% provincial sales tax and a

5% federal sales tax, totaling 12%

• in ontario, canada it is 13%
• in france, it is called a value added tax (vat), and it is 20%
• in sweden it is 25%

some goods and services are exempt from sales tax in certain places.

• for example, in north america, most groceries are sales tax exempt,

along with dental work, prescription medications, and childcare.
lets practice! calculate the sales tax on the following purchases.

1. a $50 restaurant meal in ontario, canada:
2. a $20,000 car in florida (8% area):
3. a $425 cell phone in british columbia:
4. $550 of dental work in connecticut:
5. €130 of clothes in france:
6. a kr1,500 bike in sweden:
7. a $1567 laptop in oregon:
8. find the sales tax in your area:

Explanation:

Step1: Calculate sales tax for Ontario

Sales tax rate in Ontario is \(13\%\). For a \( \$50\) meal, sales tax \(=50\times0.13\).

$$50\times0.13 = 6.5$$

Step2: Calculate sales tax for Florida (8% area)

For a \( \$20000\) car, sales tax \(=20000\times0.08\).

$$20000\times0.08=1600$$

Step3: Calculate sales tax for British Columbia

Sales tax rate in British Columbia is \(12\%\). For a \( \$425\) cell - phone, sales tax \(=425\times0.12\).

$$425\times0.12 = 51$$

Step4: Calculate sales tax for Connecticut (dental work is exempt)

Since dental work is sales - tax exempt, sales tax \(=550\times0\).

$$550\times0 = 0$$

Step5: Calculate sales tax for France (VAT 20%)

For \(€130\) of clothes, sales tax \(=130\times0.2\).

$$130\times0.2=26$$

Step6: Calculate sales tax for Sweden (25%)

For a \(kr1500\) bike, sales tax \(=1500\times0.25\).

$$1500\times0.25 = 375$$

Step7: Calculate sales tax for Oregon (0%)

For a \( \$1567\) laptop, sales tax \(=1567\times0\).

$$1567\times0=0$$

Answer:

1. \(\$6.5\)
2. \(\$1600\)
3. \(\$51\)
4. \(\$0\)
5. \(€26\)
6. \(kr375\)
7. \(\$0\)
8. (Depends on your local area. For example, if your local sales - tax rate is \(r\%\) and the purchase amount is \(P\), then sales tax \(=P\times\frac{r}{100}\))