How do you calculate tax on an item?

Question

-i live in toronto, canada .

if the item is 40.00 for example, and i'm going to buy this at the store. how much EXACTLY do i need to buy the item? including the tax & all.

i don't know the local tax rate or w/e.

Answer 1

In Toronto:

5% federal sales tax (GST)

8% provincial sales tax (PST)

total 13% tax

to calculate quickly in your head

13% = 10% + 3 x 1%

which is $4 + 3 x $0.40

total = $5.20 tax

$45.20 is final price

GST is always 5%, but PST sometimes changes. It's usually 8%, but is 5% on lodging, 10% on entertainment and alcohol at restaurants, and 12% on alcohol at retail stores

Answer 2

You take the percent of tax applied in that region and multiply it my the price and add it at the end. For example in NJ here it is 7% so if I buy a item at $10.00 it will cost $10.70 after taxes are added. Hope this helps.

Answer 3

Hey, Julie. :)

Here in Hamilton, the GST = 5% and the PST = 8%

(in total, the tax would come together as 13%)

So, you want it to get into a fraction, so you would divide 13 by 100 to get :

0.13.

Then, in your example given, you multiply 40 by 0.13 to get :

5.2 ( add a 0 on the end of the 2, because in money, it just wouldnt be $5.2, it would be $5.20 )

Then, add $5.20 to 40 to equal  $45.20

And voila, that's how it's done. :)♥

Answer 4

this is how i do it

times the cost of the item by .13% (8%+5%)  then add the tax to the cost of the item]

ex. 40.00 x .13%=$5.2 - ... - 40.00+5.2=$45.20