Question

Mr. Chi wants to sell his house. The state he lives in charges a 3.2% sales tax on the sale of a house. The county charges a 2.6% sales tax, and the city charges a 1.8% sales tax. If Mr. Chi sells his home for $289,300, what is his total tax bill?

Answer 1

To calculate Mr. Chi's total tax bill, we need to find the amount of sales tax charged by each entity and add them together.

The state sales tax on the sale of a house is 3.2%, which means Mr. Chi will owe 0.032 x $289,300 = $9,267.20 in state sales tax.

The county sales tax on the sale of a house is 2.6%, which means Mr. Chi will owe 0.026 x $289,300 = $7,520.80 in county sales tax.

The city sales tax on the sale of a house is 1.8%, which means Mr. Chi will owe 0.018 x $289,300 = $5,207.40 in city sales tax.

Therefore, Mr. Chi's total tax bill will be $9,267.20 + $7,520.80 + $5,207.40 = $21,995.40.