Discounts and tax

Math

Definition

Discounts reduce a price by a percentage, while sales tax adds a percentage to a price. To find the final price, subtract the discount first, then add the tax on the discounted amount.

How It Works

  1. Find the discount amount: original price × discount rate
  2. Subtract the discount from the original price
  3. Find the tax amount: discounted price × tax rate
  4. Add the tax to get the final price

Examples

  • A $50 shirt at 20% off costs $40 before tax
  • With 8% tax on a $40 item, the total is $40 × 1.08 = $43.20
  • A $200 TV at 15% off plus 6% tax: $200 × 0.85 × 1.06 = $180.20

Related Terms

Percent of a number Percent change Proportions in triangles

Study This Concept

Practice discounts and tax with free review games in these units:

Pre-Algebra Unit 4: Percents