The sales tax is \( 0.08 \times 120 = 9.60 \) dollars.

Fri, 01 May 2026 08:17:49 +0000

Understanding Sales Tax: Calculating the Cost Obligation (0.08 × $120 = $9.60) Understanding how sales tax applies to your purchases is essential for smart financial planning. Take the common transaction where the sales tax rate is 8%, or 0.08 in decimal form, applied to a $120 product. By breaking down the math, consumers can more easily determine their total cost and make informed buying decisions. The Simple Sales Tax Formula Sales tax is generally calculated using a straightforward formula:
Total Sales Tax = Tax Rate × Product Price