Taxes and Gratuities

Vocabulary flashcards covering key terms related to calculating tax and total costs from the notes.

Sales tax

A tax charged on the sale of goods or services, calculated as a percentage of the price before tax.

Tax rate

The percentage used to determine the amount of tax to add to the price (e.g., 8% or 6%).

Pre-tax price (price tag)

The listed price of an item before tax is added.

Total cost

The final amount paid after tax is added to the pre-tax price; total cost = pre-tax price × (1 + tax rate).

Nearest cent

Rounding monetary values to two decimal places.