Reverse Sales Tax Calculator: Price Before Tax
Find the price before tax from a total that already includes sales tax. Type the total and the rate, such as 8.875%, to see the pre-tax price and the tax to the cent.
Type the gross price and the rate as a percentage, such as 8.25, to take the tax out.
About the Reverse Sales Tax Calculator
The Reverse Sales Tax Calculator finds the price before tax from a total that already includes sales tax. It opens in Remove tax mode: type the gross price (with tax) and the tax rate, and it shows the net price and the tax that was charged. This is the calculation you need when a receipt shows only the total, when you are pricing a product so the total comes out at a round number, or when you need to report the tax on a payment.
You type the rate. Sales tax rates differ by state, county and city, and they change, so none is filled in. The rate can have up to four decimals, such as 8.875 percent, and is held exactly. The net price is rounded once to the cent, half up, and the tax is the rest of the total, so the two always add up.
How to use it
Steps
- Type the gross price (with tax), the amount on the receipt.
- Type the tax rate as a percentage, such as 8.25.
- Read the net price and the sales tax in the results.
Other modes
Switch to Add tax to put tax on a price, or to Find the rate when you know both the price before tax and the total.
The formula
With a gross price and a rate written as a decimal, the price before tax and the tax are
Subtracting the rate from the total does not work. The tax was charged on the smaller net price, so taking a percentage off the total removes too much.
Worked examples
- 108.25 at 8.25%. , so the price before tax is 100.00 and the tax is 8.25.
- 50.00 at 8.875%. , so the price is 45.92 and the tax is 4.08.
- The wrong way. 8.25 percent of 108.25 is 8.93, which would leave 99.32, a price 0.68 too low.
- Pricing to a round total. To charge exactly 20.00 including 7 percent tax, the net price is , and the tax is 1.31.
Assumptions
The result is an estimate. Rates change, some goods are taxed at a different rate, and a total may include items that are not taxed at all. Check the current rate with your state or local tax authority. The full Sales Tax Calculator also adds tax and finds the rate, and the Discount Calculator works out a sale price before tax is added.
Privacy
Nothing is uploaded; every calculation runs in your browser and never leaves your device. The amounts you type stay on this page and are gone when you close or reload it.
Frequently asked questions
What is reverse sales tax?
It is working back from a total that already includes sales tax to the price before tax. You need it when a receipt or a price tag shows only the total, or when you want to know how much of a payment was tax.
What is the reverse sales tax formula?
Price before tax = total ÷ (1 + rate). With a total of 108.25 at 8.25 percent, 108.25 ÷ 1.0825 = 100.00, so the tax was 8.25. The calculator rounds the price before tax to the cent and takes the tax as the rest, so the two always add up.
Why can I not just subtract the rate from the total?
The tax was charged on the price before tax, not on the total. Taking 8.25 percent off 108.25 removes 8.93, which is too much. Dividing by 1.0825 gives the right answer of 100.00.
Does it work with rates such as 8.875 percent?
Yes. The rate can have up to four decimals and is held exactly. A total of 50.00 at 8.875 percent is 45.92 before tax and 4.08 of tax.
Where do I find my sales tax rate?
Rates differ by state, county and city, and they change, so the calculator never fills one in. Look at your receipt, or check the current combined rate with your state or local tax authority.