Students learn a lesson about sales tax and how it impacts their daily purchases. They discover why sales tax is important, how it’s calculated, and tips to save money.

In this guide, students understand how sales tax affects their everyday purchases, why it’s crucial, and how it funds public services like schools and parks. They also learn how sales tax rates vary by location, which items might be exempt, and how online shopping is taxed. Additionally, they see how sales tax influences businesses and consumers, along with strategies to save money and make smart shopping decisions. This comprehensive guide simplifies everything students need to know about sales tax, from the basics to practical insights.

CONCEPTS

Use this video lesson on sales tax. Learn basic related concepts of

• Public Services Funding
• Tax Exemptions
• Online Shopping Taxes
• Taxation
• Consumer Choices
• Financial Responsibility
• Income and Spending
• Sales Tax Calculations
• Online Shopping Impact
• Regressive Tax Implications

GRADE LEVEL

6-12th grades. Middle School. High School. Adult Education.

TIME REQUIRED

30-45 Minutes. It may be necessary to adjust the lesson plan and allocate more or less time to certain topics, depending on the needs and interests of the students. More in-depth lesson plan below will be longer.

PROCEDURE

Hand out the worksheet below (see the GET LESSON button near the bottom of the page).

Show students the video and have and have them complete the worksheet.  Review the questions on the worksheet.  For a more in-depth lesson, complete the lesson plan below.

Sales Tax Explained: How it Impacts your Purchases

After watching the video, ask students to summarize the main points made in the video.

 

Lesson Plan: Sales Tax Explained

Objective:

• To understand what sales tax is and how it impacts consumer purchases.
• To recognize the role of sales tax in funding public services.
• To explore how sales tax rates vary by location and item.
• To discuss the implications of sales tax on different socioeconomic groups and business decisions.

Materials Needed:

• Video: “Sales Tax Explained: How it Impacts your Purchases | Beginners Guide”
• Projector or TV for video presentation
• Handouts with discussion questions and activities
• Quiz based on the video content

Lesson Structure:

1. Introduction (10 minutes)

• Begin with a brief discussion on what students already know about taxes in general.
• Introduce the concept of sales tax and its significance.
• Explain the objective of the lesson.

2. Video Presentation (15 minutes)

• Show the video: “Sales Tax Explained: How it Impacts your Purchases | Beginners Guide”

3. Discussion (20 minutes)

• Divide students into small groups to discuss the following questions:
  • What is sales tax and why do we have it?
  • How does sales tax affect the total cost of an item?
  • Where does the money collected from sales tax go?
  • Why do different states and cities have different sales tax rates?
  • What items are often exempt from sales tax and why?
  • How does sales tax impact online shopping?
  • Discuss the concept of “sin taxes” and their purpose.
  • How can sales tax be considered regressive?
  • What strategies can consumers use to manage the impact of sales tax?
• Reconvene as a class and have each group share their key points.

4. Activities (20 minutes)

• Activity 1: Sales Tax Calculation
  • Provide students with a list of items with their prices.
  • Ask students to calculate the total cost including sales tax for each item, using different sales tax rates.
  • Discuss the results and the impact of different tax rates on the total cost.
• Activity 2: Research and Presentation
  • Assign students to research the sales tax rates in different states and localities.
  • Have them present their findings to the class, highlighting the differences and possible reasons for those differences.
• Activity 3: Debate
  • Organize a debate on the topic: “Is sales tax a fair way to fund public services?”
  • Divide the class into two teams, one supporting the argument and the other opposing it.
  • Allow each team time to prepare their arguments before starting the debate.

5. Quiz (15 minutes)

• Administer a quiz based on the video content to assess students’ understanding.

6. Conclusion (10 minutes)

• Summarize the key points discussed during the lesson.
• Reiterate the importance of understanding sales tax and its implications.
• Answer any remaining questions from the students.
• Assign a homework activity: Ask students to track and report the sales tax on their next few purchases, noting the differences in tax rates if they shop in different locations.

Lesson Resources

• Sales Tax Explained: How it Impacts your Purchases | Beginners Guide