Sales and Income Tax

• Sales tax – a tax that is added to the cost of goods or services based on the percentage of the cost.

• Income tax – A tax that is paid to the government based on a percentage of wages earned.

Find the total cost of a laptop that cost $659 with a sales tax of 6.25%.

EX1)

$659 X 6.25%. 659 X .0625

329513180

395400411875.

659 + 41.19 659.00 + 41.19 700.19

sales tax

$ Total cost

Figure the net pay for the following pay stub. Mary makes $12.00 an hour and works a 40 hour week. Use the percentage rates provided for each.

EX2)

Mary Ann MarshallGross pay

Medicare (1.4%)

Social Security (4.2%)Federal Withholding (15%)Net Pay

40 X 12480 X 0.014

480.006.72

480 X 0.04220.16

480 X 0.1572.00

480 - taxes381.12