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### Calculating Sales Tax

```
Date: 09/19/2001 at 12:03:35
From: Jason
Subject: Sales Tax

How do I calculate sales tax? Please describe the steps.
```

```
Date: 09/19/2001 at 15:30:08
From: Doctor Ian
Subject: Re: Sales Tax

Hi Jason,

First, you have to know the tax rate -- for example, 5 1/4 percent.

The idea is that for each 100 units that you spend, you have to pay
5 1/4 units in tax. So the ratio

tax     5 1/4
----- = -----
price    100

You can multiply both sides of the equation by price to get

5 1/4
tax = ------ * price
100

which is how you compute the tax. Note that this is the same as
dividing the price into 100 parts, and paying an amount equal to 5 1/4
of those parts in tax:

tax = (price / 100) * 5 1/4

Does this help?

- Doctor Ian, The Math Forum
http://mathforum.org/dr.math/
```
Associated Topics:
Middle School Fractions
Middle School Ratio and Proportion

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