Personal financial literacy · TEKS 7.13A
Sales tax & income tax
Sales tax is added when you buy. Income tax is taken out of what you earn.
Key steps
- Sales tax = price × tax rate (DFW is usually 8.25%).
- Gross pay = hourly wage × hours.
- Take-home (net) pay = gross pay − taxes withheld.
Worked example
$15/hour for 20 hours with 10% income tax withheld. Take-home pay?
- Gross: 15 × 20 = $300.
- Tax: 10% of 300 = $30.
- Answer: $270
Watch out: Take-home pay is less than gross pay. If your answer is bigger, you added the tax.
Practice
5 questions with new numbers every set. Get 4 of 5 to mark this topic as practiced.