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Reverse Sales Tax Calculator

Enter a price that already includes sales tax and the tax rate. You get the price before tax and the sales tax amount, with the working shown step by step. Switch to “Add tax” to go the other way.

%

Common rates as a starting point. Rates change and some goods carry reduced rates, so confirm yours with your tax authority.

Price before sales tax
—
Before taxSales tax
Price before sales tax—
+ Sales tax—
Total price with sales tax—
Solution, step by step
    Several amounts? Split a whole list at the same rate, for example a month of receipts.
    Price incl. taxBefore taxSales tax
    Total——
    The formula

    How to calculate sales tax backwards from a total

    A reverse sales tax calculation starts from the total you paid and works out the price before tax and the tax inside it.

    Remove sales tax (reverse)Price before tax = Total ÷ (1 + rate)
    Sales tax = Total − Price before tax
    Add sales taxSales tax = Price × rate
    Total = Price × (1 + rate)

    Sales tax is charged as a percentage of the price before tax, so the total is price × (1 + rate). Working backwards means dividing, not subtracting. At 16%, the total is 116% of the price before tax, so dividing by 1.16 gives the price before tax back.

    The mistake people make is taking the rate off the total: 16% of 1,700 is 272, but the tax actually charged was 234.48. The calculator above always divides, and rounds to the cent at the end.

    Quick reference

    Divide-by table: remove sales tax at common rates

    To take sales tax out of a tax-inclusive price, divide by the figure in the second column. To find the sales tax inside the total, multiply by the third.

    Sales tax ratePrice before tax = total ÷Sales tax = total ×Example: 1,000 incl. tax
    5%1.050.047619952.38 + 47.62
    6%1.060.056604943.40 + 56.60
    7%1.070.065421934.58 + 65.42
    8%1.080.074074925.93 + 74.07
    8.25%1.08250.076212923.79 + 76.21
    10%1.10.090909909.09 + 90.91
    13%1.130.115044884.96 + 115.04
    15%1.150.130435869.57 + 130.43
    16%1.160.137931862.07 + 137.93
    17%1.170.145299854.70 + 145.30
    18%1.180.152542847.46 + 152.54
    20%1.20.166667833.33 + 166.67
    Worked examples

    Reverse sales tax examples

    Tap an example to load it into the calculator.

    How to

    How to work out sales tax from the total, by hand

    Turn the rate into a decimal. 16% ÷ 100 = 0.16.
    Add 1. 1 + 0.16 = 1.16.
    Divide the total by it. 1,700 ÷ 1.16 = 1,465.52. That is the price before tax.
    Subtract to get the tax. 1,700 − 1,465.52 = 234.48 of sales tax.

    Stop working tax out by hand

    In EloERP each tax rate is set once as inclusive or exclusive. Every POS sale and invoice then splits the price into the amount before tax and the tax itself, and posts the tax to its own ledger account. In Pakistan, Saudi Arabia, Malaysia, the UAE and Lesotho it also files the invoice with the tax authority.

    • Tax-inclusive or exclusive prices per tax rate
    • Tax split on every receipt and invoice
    • Tax posted to its own ledger account
    • E-invoicing for FBR, ZATCA, MyInvois, UAE and Lekuka
    FAQ

    Sales tax calculator: questions

    How do I calculate the price before sales tax?
    Divide the price including tax by 1 plus the tax rate as a decimal. At 16%, divide by 1.16: 1,700 ÷ 1.16 = 1,465.52. The sales tax is the difference: 1,700 − 1,465.52 = 234.48.
    What is a reverse sales tax calculator?
    It works backwards from a total that already includes sales tax. You enter the price you paid and the tax rate, and it gives you the price before tax and the amount of tax inside the total.
    Why can’t I just take 16% off the total?
    Because the tax was charged on the price before tax, not on the total. Taking 16% off 1,700 gives 1,428, which is wrong. The correct price before tax is 1,700 ÷ 1.16 = 1,465.52.
    How do I find the sales tax amount from a total?
    Multiply the total by rate ÷ (100 + rate). At 16%, that is 16 ÷ 116 = 0.137931, so 1,700 × 0.137931 = 234.48.
    Does the calculator work for GST and VAT too?
    Yes. The maths is the same for any percentage tax. There are also dedicated reverse GST and reverse VAT calculators with those rates preset.
    Can I split several receipts at once?
    Yes. Use “Several amounts?” under the calculator to list as many totals as you like at the same rate, with a running total of price before tax and tax.
    Is this calculator free?
    Yes, it is free, runs in your browser and needs no sign-up. Nothing you type is sent anywhere.
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