Question

Mr. Luis wants to sell his house. The state he lives in charges a 3.5% sales tax on the sale of a house. The county charges a 3.9% sales tax, and the city charges a 2.2% sales tax. If Mr Luis sells his home for $122,500, what is his total tax bill?

Answer 1

We have been given that Mr. Luis wants to sell his house. The state he lives in charges a 3.5% sales tax on the sale of a house. The county charges a 3.9% sales tax, and the city charges a 2.2% sales tax.

We are asked to find the total tax, if Mr Luis sells his home for $122,500.

To find total tax, we will add all tax rates as they are being applied to same base.

$\text{Total of tax rates}=3.5\%+3.9\%+2.2\%$

$\text{Total of tax rates}=9.6\%$

Now we will find 9.6% of $122,500 to find total tax bill.

$\text{Total tax bill}=\ 122,500\times \frac{9.6}{100}$

$\text{Total tax bill}=\ 1225\times 9.6$

$\text{Total tax bill}=\ 11,760$

Therefore, the total tax bill of Mr. Luis would be $\ 11,760$.