What is the term for determining the amount of tax owed based on a percentage of total cost?

The term used to describe determining the amount of tax owed based on a percentage of total cost is the "calculation of tax." This process involves taking the total amount subject to tax and applying a specific tax rate to it, which results in the final tax liability. This approach is fundamental in taxation, where governments often impose taxes on income, sales, or property as a percentage of the base amount.

In this context, clarity in terminology is crucial. The phrase "tax assessment" generally refers to the broader process of determining the value of property for tax purposes and may involve more than just the calculation based on a percentage of total cost. "Tax deduction" pertains to reducing taxable income, which is not related to the calculation of tax owed based on a rate. "Percentage evaluation" is not a standard term used within taxation frameworks; it doesn’t directly refer to the taxation process.

Understanding the precise definition of terms in tax contexts helps ensure accurate calculations and compliance with tax regulations. This understanding is vital when preparing tax returns or assessing the financial implications of purchases subject to sales tax, where calculating the tax based on a percentage is a routine necessity.