Reverse Sales Tax Calculator
Find the pre-tax price from a tax-included total
Frequently Asked Questions
Reverse sales tax formula
Pre-tax price = total price ÷ (1 + tax rate)
Sales tax = total price − pre-tax price
Example
A receipt shows $107.25 with a 7.25% tax rate: 107.25 ÷ 1.0725 = $100.00 before tax, and $7.25 of tax. At 8.25%, a total of $54.12 means a price of $50.00 and $4.12 of tax.
The common mistake
Subtracting the tax percentage from the total does not work: $107.25 − 7.25% = $99.47, which is $0.53 too low. The tax was charged on the pre-tax price, not on the total, so you have to divide. The same applies to any "remove a percentage that was added" problem, such as a tip or a markup.
Use the combined rate
Most purchases are taxed by the state and by a county, city or special district, so the rate on your receipt is usually higher than the state base rate. For example, Texas charges 6.25% statewide, but local taxes can bring the total to 8.25%; California's 7.25% base can exceed 10% in some cities. The presets above contain state base rates only. For the exact figure, use the rate printed on the receipt or look up the address with your state's tax agency.
State base sales tax rates (selection)
| State | State rate | State | State rate |
|---|---|---|---|
| California | 7.25% | New Jersey | 6.625% |
| Indiana | 7% | Michigan | 6% |
| Washington | 6.5% | Florida | 6% |
| Texas | 6.25% | Arizona | 5.6% |
| Illinois | 6.25% | North Carolina | 4.75% |
| Pennsylvania | 6% | New York | 4% |
Alaska, Delaware, Montana, New Hampshire and Oregon have no statewide sales tax, though some Alaska and Montana localities charge their own.
When you need it
- Splitting tax out of a receipt for expense reports or bookkeeping.
- Business owners who quote tax-inclusive prices and need to report taxable sales.
- Checking that the right rate was charged.
Rounding to the cent can make the result differ by a penny from the store's figure. For percentages off a price, use the discount calculator; for other percentage problems, the percentage calculator or the percent change calculator.