Reverse Sales Tax Calculator
Calculate the original price before tax from any total amount. Back out sales tax instantly using our free reverse sales tax calculator — works for all 50 US states and international currencies.
Calculate Reverse Sales Tax
Enter your total amount and sales tax rate to find the pre-tax price
What Is a Reverse Sales Tax Calculator?
- Reverse Sales Tax Calculator
- A reverse sales tax calculator is a free online financial tool that works backwards from a total price (including tax) to determine the original pre-tax price and the exact sales tax amount paid. Unlike a standard sales tax calculator that adds tax to a base price, a reverse calculator removes the tax component from the total — also known as "backing out" sales tax.
This tool is essential for businesses reconciling expenses, accountants separating tax from revenue, and individuals verifying receipt amounts. Our reverse sales tax calculator supports all 50 US states and 16 international currencies, making it useful for anyone who needs to calculate reverse sales tax quickly and accurately.
- Reverse Sales Tax Formula
- The reverse sales tax formula is:
Pre-Tax Price = Total Price ÷ (1 + Sales Tax Rate / 100). This formula divides the total amount by one plus the tax rate (as a decimal) to find the original price before tax was added. - Sales Tax Decalculator
- A sales tax decalculator is another name for a reverse sales tax calculator. It "decalculates" or removes the tax from a total to reveal the pre-tax price and the tax amount separately.
- Backing Out Sales Tax
- Backing out sales tax means working backwards from a tax-inclusive total to find the original price before tax. To back out tax, divide the total by (1 + tax rate as a decimal). For example, to back out 7% tax from $107: $107 ÷ 1.07 = $100.
How to Reverse Calculate Sales Tax in 5 Steps
The reverse sales tax formula lets you find the original price before tax when you only know the total amount paid (including tax) and the sales tax rate. This is also known as backing out sales tax from a total.
The Reverse Sales Tax Formula
Price Before Tax = Total Price ÷ (1 + Tax Rate / 100)
Sales Tax Amount = Total Price − Price Before Tax
Step-by-Step Instructions
- Find the total price and tax rate. Identify the total price paid (including sales tax) and your applicable sales tax rate percentage. For example, total = $858 and sales tax rate = 7.25%.
- Convert the tax rate to a decimal. Divide the sales tax percentage by 100. Example: 7.25% ÷ 100 = 0.0725.
- Create your division factor. Add 1 to the decimal tax rate. This is your division factor. Example: 1 + 0.0725 = 1.0725.
- Divide the total by the factor. Divide the total price by the division factor to get the price before tax. Example: $858 ÷ 1.0725 = $800.00.
- Calculate the sales tax amount. Subtract the pre-tax price from the total to find the sales tax. Example: $858 − $800 = $58.00 in tax.
Example: How to Back Tax Out of a Total
You paid $1,593.75 total on a purchase. Your sales tax rate is 6.25%. What was the original price before tax?
Step 1: Convert tax rate → 6.25% ÷ 100 = 0.0625
Step 2: Division factor → 1 + 0.0625 = 1.0625
Step 3: Price before tax → $1,593.75 ÷ 1.0625 = $1,500.00
Step 4: Tax amount → $1,593.75 − $1,500.00 = $93.75
Shortcut: When sales tax is 6.25%, divide the total by 1.0625 to instantly find the pre-tax price.
When Do You Need to Reverse Calculate Sales Tax?
- Reconciling business expenses from credit card statements that show only totals
- Preparing tax returns and separating deductible sales tax from purchase amounts
- Verifying that a merchant charged the correct tax rate on your receipt
- Splitting purchases between taxable and non-taxable portions for accounting
- Importing receipts into accounting software (QuickBooks, Xero, FreshBooks) that requires pre-tax amounts
- Filing expense reports for employer reimbursement
Watch: How to Calculate Reverse Sales Tax
Learn how to back out sales tax from a total with this step-by-step video explanation.
Reverse Sales Tax Calculation Formulas
Here are the key formulas used in reverse sales tax calculations. Use these to manually calculate sales tax backwards from any total amount.
Calculate Price Before Tax
Price Before Tax = Total Price with Tax ÷ (1 + Sales Tax Rate)
Where Sales Tax Rate = Tax Percentage ÷ 100
Calculate Sales Tax Amount from Total
Tax Amount = Total Price with Tax − Price Before Tax
After finding the pre-tax price, subtract it from the total to find the tax paid.
Determine Sales Tax Rate from Total
Tax Rate = ((Total − Pre-Tax Price) ÷ Pre-Tax Price) × 100
If you know both the total and the original price, divide the difference by the original price.
Calculate Tax Percentage from Total
Tax % = (Tax Amount ÷ Pre-Tax Price) × 100
Use this to find what percentage of the original price was charged as sales tax.
Common Mistake: Why You Can't Simply Subtract the Tax Percentage
A frequent error when trying to remove tax from a total is subtracting the tax percentage directly from the total amount. This doesn't work because sales tax is calculated on the original (pre-tax) price, not on the total.
❌ Wrong Way
$110 − (10% × $110) = $110 − $11 = $99
Incorrect! This subtracts 10% of the total, not the actual tax.
✓ Correct Way
$110 ÷ 1.10 = $100
Correct! Dividing by (1 + rate) gives the true pre-tax price.
The $1 difference occurs because tax is calculated on the pre-tax price ($100), not the total ($110). Always use the division method to correctly back out sales tax.
US State Sales Tax Rates (2026)
Use these state sales tax rates with our reverse sales tax calculator. Note: local taxes may apply in addition to the state rate. Always check your local combined rate for the most accurate reverse tax calculation. Data sourced from the Tax Foundation.
| State | Rate (%) | Use Rate | State | Rate (%) | Use Rate |
|---|---|---|---|---|---|
| Alabama | 4.00% | Montana | 0.00% | ||
| Alaska | 0.00% | Nebraska | 5.50% | ||
| Arizona | 5.60% | Nevada | 6.85% | ||
| Arkansas | 6.50% | New Hampshire | 0.00% | ||
| California | 7.25% | New Jersey | 6.625% | ||
| Colorado | 2.90% | New Mexico | 4.875% | ||
| Connecticut | 6.35% | New York | 4.00% | ||
| Delaware | 0.00% | North Carolina | 4.75% | ||
| Florida | 6.00% | North Dakota | 5.00% | ||
| Georgia | 4.00% | Ohio | 5.75% | ||
| Hawaii | 4.00% | Oklahoma | 4.50% | ||
| Idaho | 6.00% | Oregon | 0.00% | ||
| Illinois | 6.25% | Pennsylvania | 6.00% | ||
| Indiana | 7.00% | Rhode Island | 7.00% | ||
| Iowa | 6.00% | South Carolina | 6.00% | ||
| Kansas | 6.50% | South Dakota | 4.20% | ||
| Kentucky | 6.00% | Tennessee | 7.00% | ||
| Louisiana | 4.45% | Texas | 6.25% | ||
| Maine | 5.50% | Utah | 6.10% | ||
| Maryland | 6.00% | Vermont | 6.00% | ||
| Massachusetts | 6.25% | Virginia | 5.30% | ||
| Michigan | 6.00% | Washington | 6.50% | ||
| Minnesota | 6.875% | West Virginia | 6.00% | ||
| Mississippi | 7.00% | Wisconsin | 5.00% | ||
| Missouri | 4.225% | Wyoming | 4.00% |
* Rates shown are state-level only. Many localities add additional sales tax. For NYC, the combined rate is 8.875%. For Chicago, IL it's 10.25%. Always check your local combined rate. Source: Tax Foundation.
Frequently Asked Questions About Reverse Sales Tax
Everything you need to know about how to reverse calculate sales tax, back out tax from totals, and find pre-tax prices.
A reverse sales tax calculator is a free online tool that works backwards from a total price (including tax) to find the original pre-tax price and the exact sales tax amount. Instead of adding tax to a price, it removes the sales tax. Use the formula: Price Before Tax = Total ÷ (1 + Tax Rate / 100). It is also known as a tax decalculator, inverse tax calculator, or backwards tax calculator.
To reverse calculate sales tax, divide the total amount by (1 + sales tax rate as a decimal). For example, if the total is $107 and the tax rate is 7%, divide $107 by 1.07 to get the original price of $100. The sales tax amount is $107 − $100 = $7.
Formula: Price Before Tax = Total Price ÷ (1 + Tax Rate / 100). You can use our free reverse sales tax calculator above to do this calculation instantly.
To reverse calculate sales tax from a receipt, find the total amount paid, then know your local sales tax rate. Convert the rate to decimal (divide by 100), add 1, and divide the total by this number. The result is your pre-tax price. Subtract this from the total to find the exact tax amount you paid.
For example, if your receipt shows $53.25 and your tax rate is 6.5%: $53.25 ÷ 1.065 = $50.00 (pre-tax), tax paid = $3.25.
To back tax out of a total, divide the total amount by 1 plus the tax rate (expressed as a decimal). For example, to back out 8% tax from a $108 total: $108 ÷ 1.08 = $100 (price before tax). The tax amount is $108 − $100 = $8.
Important: Do not simply subtract the tax percentage from the total — this gives an incorrect result. The division method is the correct way to back out sales tax.
To correctly subtract (remove) tax from a total: divide the total by (1 + tax rate as decimal). Do NOT simply calculate the tax percentage of the total and subtract it — this common mistake gives the wrong answer.
Wrong way: $110 − (10% of $110) = $110 − $11 = $99 ❌
Right way: $110 ÷ 1.10 = $100 ✓
The $1 difference occurs because tax is calculated on the pre-tax price, not the total.
To calculate the tax amount from a total: first find the pre-tax price by dividing the total by (1 + tax rate as decimal), then subtract the pre-tax price from the total.
Example: Total = $85.60, Tax Rate = 7%. Pre-tax = $85.60 ÷ 1.07 = $80.00. Tax Amount = $85.60 − $80.00 = $5.60.
To calculate sales tax in reverse, you need the total price (including tax) and the tax rate. Use the reverse sales tax formula: Original Price = Total Price ÷ (1 + Sales Tax Rate / 100). Then: Sales Tax Amount = Total Price − Original Price.
Example with 6% tax rate and $50 total: $50 ÷ 1.06 = $47.17 (pre-tax price), Tax = $50 − $47.17 = $2.83.
The reverse sales tax formula is: Pre-Tax Price = Total Price ÷ (1 + Sales Tax Rate). Where the Sales Tax Rate must be expressed as a decimal (divide percentage by 100). For example, 8.875% becomes 0.08875. Then: Pre-Tax Price = Total ÷ 1.08875. This formula works for any sales tax rate and is used across all US states.
To find the original price before tax, use this formula: Original Price = Total Amount ÷ (1 + Sales Tax Rate ÷ 100). Example: If you paid $53.25 total with 6.5% sales tax: $53.25 ÷ 1.065 = $50.00. The original price before tax was $50.00, and $3.25 was sales tax.
Use our price before tax calculator above to compute this instantly.
The 8.875% sales tax rate is the combined state and local sales tax rate for New York City (NYC). It includes 4% NY state tax + 4.5% NYC local tax + 0.375% Metropolitan Commuter Transportation District surcharge.
To reverse calculate 8.875% sales tax: divide any total by 1.08875. For example, $108.88 ÷ 1.08875 = $100.00 (pre-tax price). Use the quick rate button "8.875%" in our calculator above for instant NYC tax calculations.