Reverse Sales Tax Calculator
Calculate the original price before tax
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Please enter a valid amount
Please enter a valid tax rate (0-100)
Calculation Results
Reverse Sales Tax Calculator
Easily find the original price of an item before sales tax was added. Whether you’re organizing receipts, handling business expenses, or making accurate price comparisons, this reverse tax tool helps you calculate the pre-tax amount from any tax-inclusive total.
What Is a Reverse Sales Tax Calculator?
A Reverse Sales Tax Calculator is a financial tool that determines the original cost of a product or service before tax was applied. If you only know the final amount (with tax included) and the tax rate, this calculator works backward to reveal the price before taxes were added.
When to Use a Reverse Sales Tax Calculator
This tool is especially helpful in the following situations:
- You have a total bill amount and need to separate the base price from the tax.
- You’re preparing business records for accounting or tax reporting.
- You want to fairly compare tax-inclusive vs. tax-exclusive product prices.
- You’re reimbursing employees or submitting expense claims that exclude tax.
How to Calculate Reverse Sales Tax
The formula used to extract the pre-tax value is:
Pre-Tax Price = Total Price ÷ (1 + Tax Rate / 100)
To find out how much tax was included:
Tax Amount = Total Price – Pre-Tax Price
Reverse Sales Tax Examples
Example 1: General Purchase
You paid $108.90 for an item, and the tax rate is 8.9%.
Pre-Tax Price = $108.90 ÷ 1.089 = $100.00
Tax Amount = $108.90 – $100.00 = $8.90
Example 2: Higher Tax Environment
You were charged $235.20 in a region with a 20% sales tax.
Pre-Tax Price = $235.20 ÷ 1.20 = $196.00
Tax Amount = $235.20 – $196.00 = $39.20
Example 3: Business Expense Tracking
Your business received a receipt totaling $527.34. The local tax rate is 7.5%.
Pre-Tax Price = $527.34 ÷ 1.075 ≈ $490.55
Tax Amount = $527.34 – $490.55 ≈ $36.79
Why Use This Calculator?
Using a reverse tax calculator helps you:
- Understand true product pricing without tax
- Improve financial transparency for bookkeeping
- Accurately calculate tax liabilities or deductions
- Reconcile receipts with accounting entries