Reverse Sales Tax Calculator
Extract the base price from any total. Whether you're doing your taxes or just curious about the markup, this tool quickly separates the tax from the principal amount.
What is a reverse sales tax calculation?
A reverse sales tax calculation (also called a "back-calculation") is the process of finding the original price of an item before tax was added, starting from the final total price paid.
What is the formula for reverse sales tax?
Original Price = Total Price / (1 + (Tax Rate / 100)). For example, if you paid $107 total and the tax rate was 7%, the original price was $107 / 1.07 = $100.
How do I find the amount of tax paid from the total?
Once you find the original price, subtract it from the total price. Alternatively: Tax Amount = Total Price - [Total Price / (1 + Tax Rate/100)].
Why is reverse sales tax useful?
It is essential for bookkeeping and accounting, especially when you have a total receipt but need to record the base cost and the tax portion separately for tax filings or expense reports.