How to find the tax rate

Topic:- Tax rate

The tax rate describes the burden ratio (usually expressed as a percentage) at which a business or person is taxed. There are several methods used to present a tax rate: statutory, average, marginal, effective, effective average, and effective marginal. These rates can also be presented using different definitions applied to a tax base: inclusive and exclusive.

Let's see a problem on this.

Question:-

The sales tax on a $105 digital camera is $7.15.What is the sales tax rate.

Answer:-

Let the sales tax rate be x%

According to the given problem

x% of 105 = 7.15

x
----- * 105 = 7.15
100

       7.15*100
  x = ----------
         105

    715
x= -----
    105


x = 6.8 %

Hence ,Sales tax on $105 digital camera is 6.8% ,which amounts to $7.15