Q:

# How do you add tax?

A:

Adding tax to a purchase can be accomplished with basic mathematics that include multiplication, percentages, decimals and addition. It is only necessary to know the sales tax in a given area as a percentage of the total purchase.

## Keep Learning

1. Convert the percentage into a decimal

Begin by converting the percentage of sales tax into a decimal number. For example, 10 percent sales tax becomes 0.10.

2. Calculate tax

Calculate the tax on the purchase by multiplying the purchase price by the sales tax. A car that costs \$20,000 and has 10 percent sales tax would be taxed for \$2,000.

3. Add the tax to the purchase price

Add the number calculated sales tax to the purchase price to find the total price with tax. The \$20,000 car with \$2,000 tax would cost \$22,000.

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