Sales Tax Reverse Calculator
Extract sales tax from a total price or add tax to a pre-tax price using any state or local tax rate.
Enter a price and tax rate, then click calculate.
What This Calculator Does
This calculator performs two key sales tax functions: extracting the pre-tax price and tax amount from a tax-inclusive total (reverse calculation), and adding sales tax to a pre-tax price (forward calculation). It works with any state, local, or combined sales tax rate.
The Formula
When tax is already included in the price, you cannot simply multiply by the tax rate to find the tax amount. Instead, divide the total by (1 + tax rate as a decimal) to extract the original price. The difference is the tax. For adding tax, multiply the pre-tax price by (1 + rate).
Step-by-Step Example
Choose calculation mode
Select "Extract Tax" to find the pre-tax price from a total, or "Add Tax" to calculate the total from a pre-tax price.
Enter the price
For reverse calculation, enter the tax-inclusive total (e.g., $106.25). For forward, enter the pre-tax price (e.g., $100.00).
Enter the tax rate
Use your combined state and local sales tax rate. Example: 6.25% for Texas, 8.875% for New York City.
Review results
See the pre-tax price, tax amount, total, and effective tax rate clearly broken down.
Real-World Use Cases
Bookkeeping and Accounting
Separate tax from receipts where only the total is shown, ensuring accurate tax liability records.
Retail Pricing
Determine what pre-tax price to set when you want the tax-inclusive total to hit a specific price point.
Expense Reporting
Extract deductible sales tax from business purchase receipts for tax return preparation.
Common Mistakes to Avoid
Multiplying a tax-inclusive total by the tax rate to find the tax amount. This overstates the tax because the rate should be applied to the pre-tax amount, not the total.
Using the state rate alone when a local jurisdiction adds additional tax. Always use the combined rate.
Confusing tax-inclusive and tax-exclusive pricing. In the US, posted prices typically exclude sales tax; in many other countries, prices include tax.
Frequently Asked Questions
Accuracy and Disclaimer
Sales tax rates vary by state, county, city, and product type. Some items may be tax-exempt or subject to reduced rates. Verify applicable rates with your state or local tax authority for accurate calculations.
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