Lesson 10Tax and Tip

Learning Goal

Let’s learn about sales tax and tips.

Learning Targets

  • I understand and can solve problems about sales tax and tips.

Warm Up: Notice and Wonder: The Price of Sunglasses

Problem 1

You are on vacation and want to buy a pair of sunglasses for $10 or less. You find a pair with a price tag of $10. The cashier says the total cost will be $10.45.

An image of a cash register, price scanner, and pair of sunglasses. The sunglasses have a price tag labeled ten point zero zero dollars. The display on the register indicates 10 point 4 5 dollars.

What do you notice? What do you wonder?

Activity 1: Shopping in Two Different Cities

Problem 1

Different cities have different sales tax rates. Here are the sales tax charges on the same items in two different cities. Complete the tables.

City 1

item

price
(dollars)

sales tax
(dollars)

total cost
(dollars)

paper towels

lamp

pack of gum

laundry soap

City 2

item

price
(dollars)

sales tax
(dollars)

total cost
(dollars)

paper towels

lamp

pack of gum

laundry soap

Activity 2: Shopping in a Third City

Problem 1

Here is the sales tax on the same items in City 3.

item

price
(dollars)

sales tax
(dollars)

paper towels

lamp

pack of gum

laundry soap

  1. What is the tax rate in this city?

  2. For the sales tax on the laundry soap, Kiran says it should be $0.84. Lin says it should be $0.87. Do you agree with either of them? Explain your reasoning.

Activity 3: Dining at a Restaurant

Problem 1

Jada has a meal in a restaurant. She adds up the prices listed on the menu for everything they ordered and gets a subtotal of $42.00.

A receipt from a meal showing a subtotal of 42.00, sales tax of 3.99 and a total of 45.99
  1. When the check comes, it says they also need to pay $3.99 in sales tax. What percentage of the subtotal is the sales tax?

  2. After tax, the total is $45.99. What percentage of the subtotal is the total?

  3. They actually pay $52.99. The additional $7 is a tip for the server. What percentage of the subtotal is the tip?

Problem 2

The tax rate at this restaurant is 9.5%.

Two printed receipts with some information left blank. The information on the left receipt is as follows: Date: Sep 12th. Time: 6:04 PM. Server: #27. Bread Stix, 9 point 5 0. Ravioli Bites, 10 point 5 0.  Cheesecake, 4 point 9 5. Subtotal, 24 point 9 5. Sales Tax, blank. Total, blank.  The information on the right receipt is as follows: Date: Sep 12th. Time: 7:12 PM. Server: #27. Garden Salad, blank. Broccoli Bites, blank. Subtotal, blank. Salsx Tax, 1 point 6 1.  Total, blank.
  1. Another person’s subtotal is $24.95. How much will their sales tax be?

  2. Some other person’s sales tax is $1.61. How much was their subtotal?

Are you ready for more?

Problem 1

Elena’s cousins went to a restaurant. The part of the entire cost of the meal that was tax and tip together was 25% of the cost of the food alone. What could the tax rate and tip rate be?

Lesson Summary

Many places have sales tax. A sales tax is an amount of money that a government agency collects on the sale of certain items. For example, a state might charge a tax on all cars purchased in the state. Often the tax rate is given as a percentage of the cost. For example, a state’s tax rate on car sales might be , which means that for every car sold in that state, the buyer has to pay a tax that is of the sales price of the car.

Fractional percentages often arise when a state or city charges a sales tax on a purchase. For example, the sales tax in Arizona is . This means that when someone buys something, they have to add times the amount on the price tag to determine the total cost of the item.

For example, if the price tag on a T-shirt in Arizona says , then the sales tax is , which rounds to  cents. The customer pays , or for the shirt.

The total cost to the customer is the item price plus the sales tax. We can think of this as a percent increase. For example, in Arizona, the total cost to a customer is of the price listed on the tag.

A tipis an amount of money that a person gives someone who provides a service. It is customary in many restaurants to give a tip to the server that is between and of the cost of the meal. If a person plans to leave a tip on a meal, then the total cost will be of the cost of the meal.