Reverse Sales Tax Calculator
Calculate the original price before tax from a total amount
Tip: Use this when you know the total price after tax but need to determine the original price and tax amount.
Advanced Options
Calculation Results
Calculation Breakdown
Original Price = Total Amount ÷ (1 + (Tax Rate ÷ 100))
Tax Amount = Total Amount - Original Price
Practical Applications
Business Expenses
- Determine pre-tax costs from receipts
- Calculate deductible tax amounts
- Verify vendor invoices
- Track taxable vs. non-taxable expenses
Personal Finance
- Understand true item costs before tax
- Budget more accurately
- Compare prices across tax jurisdictions
- Calculate tax paid for rebates
How Reverse Sales Tax Works
The Formula
Original Price = Total Amount ÷ (1 + (Tax Rate ÷ 100))
Tax Amount = Total Amount - Original Price
Original Price = 107.25 ÷ (1 + (7.25 ÷ 100)) = $100.00
Tax Amount = $107.25 - $100.00 = $7.25
Why It Matters
When you see a price tag showing $107.25, the store actually receives $100.00 and sends $7.25 to the government. This calculation helps you understand the true cost of items before taxes are applied.
Frequently Asked Questions
What's the difference between sales tax and VAT?
Sales tax is added at the final point of sale (visible to consumers), while VAT (Value Added Tax) is applied at each production stage. This calculator works for both, though VAT calculations can be more complex in practice.
Can I use this for multiple tax rates?
For combined rates (e.g., state + county + city taxes), simply add all percentages together and enter the total rate. For separate calculations, you'd need to know how each tax applies (some may be compounded).
How accurate is the rounding?
The calculator uses precise JavaScript math with your chosen rounding method. For legal/tax purposes, always verify with official tax authority rules which may specify exact rounding procedures.
What if my receipt shows multiple taxed items?
For best results, calculate each item separately if they have different tax rates (e.g., taxable vs. non-taxable items). For a single tax rate on all items, the total works fine.