How to Calculate Discounts and Sales Tax?

Figuring out the final price of an item on sale can be tricky because sales tax is calculated after the discount is applied. Here is how it works:

1. Find the Discount: Multiply the original price by the discount percentage. Subtract this from the original price to get the Subtotal.
2. Add the Sales Tax: Multiply the Subtotal by your state's sales tax percentage. Add this amount to the Subtotal to get the Final Price.

For example, a $100 shirt with a 20% discount costs $80. If your state sales tax is 6%, the tax is calculated on the $80 ($80 x 0.06 = $4.80). Your final price at the register will be $84.80.