Which term matches the definition: tax paid at purchase as a percentage of price?

• A. Income Tax
• B. Sales Tax
• C. Tax Evasion
• D. Tax Base

Answer: (B)

The concept here is a tax that's charged when you buy something, based on a percentage of the price. That kind of tax is called a sales tax. It’s collected at the point of sale and added to the total you pay in the store, making your bill higher by a percentage of the item’s price.

Income tax is a tax on money you earn, not what you buy. Tax evasion is illegally avoiding taxes. Tax base is the overall amount of wealth or income that a government can tax. So the term that matches “tax paid at purchase as a percentage of price” is sales tax.