Pre-tax / post-tax confusion sprint

Apply tax, tip, or discount to the wrong subtotal or in the wrong order.

An error-pattern drill: practice spotting and avoiding this specific SHSAT trap.

Loading questions…

How to avoid tax and tip mistakes

A meal costs 50 dollars. Tax is 8%, and you leave a 20% tip on the pre-tax amount. The tax is 4 dollars and the tip is 10 dollars, so the total is 64 dollars. If you tip on the 54-dollar total after tax, the tip is 10.80 dollars and the total is 64.80 dollars. That is a trap answer.

The same thing happens with sales. 20% off an 80-dollar item gives a sale price of 64 dollars. A 5% tax goes on the 64 dollars, so the total is 67.20 dollars. If you tax the original 80 dollars, you get 68 dollars.

Check habits:

Worked examples

Example 1.
A meal at a pizzeria costs \(\$78.00\) before tax. Sales tax is 7%, and a 18% tip is left on the pre-tax amount. What is the total cost, including tax and tip?
Show answer and explanation
Answer:
A

Tax \(= \$78.00 \times 7/100 = \$5.46\); tip \(= \$78.00 \times 18/100 = \$14.04\) (both on the pre-tax amount); total \(= \$97.50\). (Figuring the tip on the after-tax amount (\(18\%\) of $83.46) gives about $98.48. Forgetting to add the tax gives $92.04. Forgetting to add the tip gives $83.46.)

Example 2.
A backpack regularly costs \(\$48.00\). It is on sale for 44% off, and then 8% sales tax is applied to the discounted price. What is the total cost?
Show answer and explanation
Answer:
D

Sale price \(= \$48.00 \times (1 - 44/100) = \$26.88\); tax \(= \$26.88 \times 8/100 = \$2.1504 \approx \$2.15\); total \(= \$29.03\). (Figuring the tax on the original price (8% of \(\$48.00\) is $3.84) gives $30.72. Forgetting to add the tax gives $26.88. Subtracting the tax instead of adding it gives about $24.73.)

Example 3.
A jacket is on sale for 20% off. After a 5% sales tax is added to the sale price, the total cost is \(\$84.00\). What was the original price of the jacket, in dollars?
Show answer and explanation
Answer:
100

The total is 105% of the sale price: \(84 \div 1.05 = 80\). The sale price is 80% of the original: \(80 \div 0.8 = 100\). The original price is \(\$100\).