Tax Tip and Discount

​Money the government collects based on income, sales, and other activities.  Sales tax is given in a percent, so you need to do a calculation to find the amount of tax paid.

TAX

​Money given to someone who provides a service. It is based on a percent of money spent, so you need to do a calculation to find the amount of a tip.

TIP

​A price reduction.  Sometimes given as a dollar amount OR in percent, such as a 10% discount.  When given a percent you need to do a calculation to find the price reduction.

DISCOUNT

Tax is a percentage of the original price that the government collects.

Tax is ADDED to the original price

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TAX

Tip is an amount given to someone in exchange for services. It is usually a percentage of the original price

Tip is ADDED to the original price

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TIP

Discount is a price reduction.  Sometimes given as a dollar amount OR in percent

Discount is SUBTRACTED from the original price

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DISCOUNT