Math in Daily Life : How to Calculate Sales Taxes

Sales tax, we all have to pay it. But how
do you calculate how much sales tax is? Hi, I’m jimmy Chang. I’ve been teaching college
mathematics for almost a decade. And we’re here to calculate sales tax. Now the one thing
that you definitely need of course, is. Is you need to find out from your county or state.
How much the sales tax rate is? It can be 7%, 8%, eight and a quarter. Five and half,
it all depends on what the tax happens to be. But you definitely need that number. Because
you’ll need it to figure out how much tax you’ll be paying on certain items. And it
will help you find out what the total is. And it will give you more insight as to why
the final totals are what they are. Now here’s a brief example, now. Suppose you have a sales
tax of 7%. First thing that you definitely need to do is take what ever percentage that
you are provided. And turn it into a decimal. That way, it will help you figure out how
much tax you’re actually paying on a particular item. Now because it is 7%. You take that
decimal and shift it to the left, two places. So 7% is actually another way of saying 0.07.
Now here’s an example of how to calculate how much sales tax you’re paying. The much
sought after Nintendo Wii costs two hundred and forty nine dollars and ninety nine cents,
retail. To figure how much tax you’ll be paying under the 7% sales tax. You simply take how
much the Wii is worth. 249.99 and multiply by 0.07. A calculator is very, very handy
here. But because we are talking about dollars and cents. You want to round to 2 decimal
places. So when you multiply those two numbers. You will get a grand total of a tax, a sales
tax of 17 dollars and 50 cents. But what if you wanted to figure out how much you would
be paying ahead of time. With tax as well as the total amount, with tax included. Well,
you’re still doing the same thing that we just did. But you always want to be sure that
instead of, in this case 0.07, put a 1as their front number. In other words, 1.07. Whenever
you put a 1 in front of the decimal. It will always give you the total. So if you want
to find out the total cost of the Wii including tax. You take, 249.99 and multiply by 1.07.
Notice that 1. That’s going to give you the total along with the tax. Now when you multiply,
you’re going to get a grand total of 267 dollars and 49 cents. And that’s going to give you
the grand total, tax included. So, my name is Jimmy Chang. And that’s an example as to
how you calculate sales tax with and without totals.

66 thoughts on “Math in Daily Life : How to Calculate Sales Taxes

  1. lets say you already know the sales tax of a certain store, and you want to know how much you would be paying for an item plus tax ahead of time. well, what if the sales tax is already in decimal form such as 8.75%. my main question is, it is already in decimal form but yet, it is a percentage. do you have to change anything, or do you move it 2 places to the left from the existing period??!?! (please reply)

  2. when I multiply 249.99 x 1.07 I got 267.48 how did you get 267.49


  4. Thank you for your help. After listening to several videos you are the only one who completely answered my question.

  5. It will just be let's say 24.99 is your price, you just do 24.99 times 5.25 .

  6. I learn nothing in school for an hour and a half,but in a couple minutes this nice guy teaches me! Thank You Very Much!

  7. Thank you so much. My teacher would not take the time to teach me this.

  8. can the you tube math instructors please break down the math problem by actually doing it instead of just telling the answer, tell how you came up with the answer

  9. That's what he was talking about @ 1:32. You have to round off the second number to the right of the decimal. You got 17.499, right? So because the third number to the right (being 9) is higher than 5, that changes the 49 to 50.

  10. you know u can just add 17.50 to 249.99? Well of course you know that but I guess thats ur way of learning. 🙂

  11. Thank you Jimmy you save me one step by adding the 1 in front of the decimal number. I'll be going over your financial videos. 
    Have a good one.

  12. Alameda county in California just jacked up its sales tax to 10%.  

    What a perfect way to put businesses out of business and destroy the local tax base, but libs still think that they can tax their way into prosperity.

  13. Great video thanks really. Sometimes I get my formula correct but my answer is wrong because I don't pay attention to what I'm doing!

  14. In Indiana if the sales tax is 7% than that goes for anything you buy including books or groceries?

  15. You take that decimal.
    The mu
    It cost R200 calculator handy what about the tax rate x by 1.07 you need a tan yeah

  16. Where were you when our computer system at McD's crashed, and I had to calculate the totals mentally?!

  17. Yeah I multiplied 249.99 by 1.07 and I came up with 267.48 so I was one cent off. Am i doing anything wrong?

  18. thank you so much i need to know about this and you help me thx so much and have an good one! Sir

  19. Sorry professor you left out some important details. Let’s use my home state… I stop at store in am I get gas and a coffie. We pay 37 cents tax on gas cause government says oil company’s are bad. Also pay 7percent sales tax on coffie. So for those of us who are not a professor that’s 44percent tax between my coffie and gas.. I have already paid fed at 32percent and state tax at 7 percent on the money I’m using to buy my gas and coffie so that’s taxed 2x. When said and done someone living in nj making 100grand a year will end up giving just about half to the real mob/ politicians.. call it fees charges tax it’s my fruit from my labor not there’s. We are getting raped I hope you teach that cause the younger gen is in for one hell of a debt issue.. I’ll be dead with my money 💰

Leave a Reply

Your email address will not be published. Required fields are marked *