What is tax?

Taxes are payments that people and businesses pay to the government.

Usually, when someone gets paid from their job, a part of the money they make goes towards taxes.

Another time we pay tax is when we buy items in a store. For example, if someone bought items from a pet store for their dog they may have to pay sales tax.

Explore the previous image of a pet store receipt. Where is the sales tax being added?

Where else do you think someone may need to pay sales tax on their items?

Share your thoughts with a partner, if possible.

Sales tax

In this learning activity, we are going to learn a new term. It is called sales tax.

What is sales tax? In Ontario, sales tax is referred to as HST, which stands for harmonized sales tax.

It is composed of 8% provincial sales tax and 5% federal sales tax for a combined total of 13% sales tax.

As a consumer, we need to consider that sales tax is added to certain goods and services that we purchase, which will change the total amount of the purchase.

Examine the video below to learn more about sales tax.

How can I calculate sales tax?

Let’s pretend that you went to the store and bought some books for you and your sibling. We know that HST is 13%, which means that 13% will be added to the total cost of the books you purchased.

How can you calculate that?

First, a percentage of a number is always out of 100 so that means that 13% = 13 parts of 100. In decimal form, it looks like this: 0.13 (thirteen hundredths).

Now, you need to multiply the total cost of your books (Let’s pretend it is $28.00) and the 0.13 together.

28 x 0.13 = 3.64

This means that you will have to add $3.64 to the $28.00 the cost of your books.

$28.00 + $3.64 = $31.64

Therefore, in total, your books will cost $31.64.

Math congress

Let’s explore some addition strategies to find the sum of food items to solve the following math problem:

A grade 5 student was very hungry. They chose the following items in their lunch combo: sushi ($10.96), salad ($9.06), and milk ($2.28)

1. How much money did the student spend on their food combo before sales tax?

2. How much money is the food combo after sales tax (reference the instructions above)?

Complete the RICE Strategy Organizer in your notebook or using the following fillable and printable organizer.

What strategy did you use to solve this math problem? If possible, share your strategy with a partner. Did you use the same strategy? Were they similar?

Menu activity

Below is an image of a menu for a Restaurant. Listed on the menu are the following foods and prices:

• Spring Roll $3.00
• Salad Roll $3.00
• Wonton $5.00
• Chicken or Pork Chow Mein $8.00
• Chicken or Beef with Broccoli $8.00
• Szechuan Chicken or Beef $9.00
• Shrimp and Chicken $10.00
• Steamed Rice $3.00
• Soft Drinks $1.50
• Coffee, Tea, Hot Chocolate $1.50

You are excited to try the new restaurant in your hometown that just opened. Your boss has given you and your three other employees a $100.00 gift card to the restaurant as a congratulations for the work you have done. You and your co-workers decide to have dinner at the restaurant. Calculate the cost of your meal, including sales tax. Don’t forget to tip! Tips are important to restaurant workers and are usually around 15%

You can use an oral description of the group meal, a strategy of your choice, or the Rice Strategy Organizer in your notebook or using the following fillable organizer to help you find the total cost of the meal including sales tax.

Reflection

As you read through these descriptions, which sentence best describes how you are feeling about your understanding of this learning activity? Press the button that is beside this sentence.

Now, record your ideas using a voice recorder, speech-to-text, or writing tool.

Press ‘Discover More’ to extend your skills.

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