Reverse Sales Tax Calculator

Enter a tax-inclusive total and the rate — get the pre-tax price and the tax inside it

Updated 2026-09-28

Total paid (tax included)

State sales tax rate

Local rate (county + city + district)

Combined rate: 8.25%
Price before tax: $100.00
Sales tax included: $8.25

Pre-tax price = total ÷ (1 + combined rate). Arithmetic only — confirm your combined rate with your state revenue department.

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A receipt, a card statement, or a cash drawer total usually shows one number with tax already baked in. To record the sale properly, file a return, or check a supplier invoice, you need to split it back into the price and the tax. The calculator does that split in one step, and the guide below shows the formula so you can check it by hand.

The reverse sales tax formula

Divide the total by one plus the tax rate. Pre-tax price = total ÷ (1 + rate). The tax is whatever is left: tax = total − pre-tax price.

At an 8.25% rate, a $108.25 total divided by 1.0825 is exactly $100.00, so the tax inside it is $8.25. The same method works for any rate: convert the percentage to a decimal (7% becomes 0.07), add one, and divide.

The mistake most people make

Multiplying the total by the rate does not give you the tax. It gives you tax on the tax. On a $100 total at 8.25%, 100 × 0.0825 = $8.25, but the real tax inside that $100 is $7.62. The shortcut overstates the tax by $0.63 on every $100, and on a month of sales that difference becomes a filing error.

The error grows with the rate, which is why it shows up most in high-rate cities. The table below shows the correct split of a $100 total at common combined rates.

What a $100 tax-inclusive total contains
Combined rate	Pre-tax price	Tax inside $100	Wrong shortcut overstates by
5%	$95.24	$4.76	$0.24
6%	$94.34	$5.66	$0.34
7%	$93.46	$6.54	$0.46
8.25%	$92.38	$7.62	$0.63
9.5%	$91.32	$8.68	$0.82
10.25%	$90.70	$9.30	$0.95

Combined rates: state plus local

Most US sales are taxed at a combined rate: the state rate plus any county, city, and special-district rates for the place of sale. Reverse the total using the combined rate, not the state rate alone. Enter each layer in the calculator and it adds them together before dividing.

Rates change, usually on January 1 or July 1, and differ street by street in some states. Look up the rate for the exact address on your state revenue department's website or its rate-lookup tool before relying on a figure for a return.

When you need to reverse sales tax

The same calculation turns up in a surprising number of everyday jobs.

You price items with tax included (common at markets, events, and food trucks) and need the taxable sales figure for your return
A customer asks for a receipt showing tax separately after paying a round-number price
You are entering supplier receipts into your books and the receipt only shows a total
You want to check that a card terminal or POS applied the right rate
You are reconciling cash drawer totals against recorded sales at the end of a shift

Pricing with tax included

If you want a customer to pay a clean $10.00 including tax, the sticker price before tax is $10.00 ÷ (1 + rate). At 8% that is $9.26, with $0.74 of tax. Because cents round, the split may land a penny away from the exact figure on some totals; record what your POS actually rang up.

Whether you may advertise tax-included prices, and how the receipt must show the tax, is set by each state. Check your state's rules before switching to tax-included pricing.

Keep the numbers in a spreadsheet

Ready-made Excel and Google Sheets templates that pick up where this calculator stops. One-off purchase, instant download.

Receipt Template + Receipt Log Spreadsheet
Printable receipt with totals and payment method, plus a numbered log.
$5See template
Invoice Template + Invoice Log Spreadsheet
Auto-totalling invoice with tax, discount and balance due, plus an overdue-flagging log.
$7See template

Frequently asked questions

How do I remove sales tax from a total?

Divide the total by 1 plus the rate as a decimal. For a $54.00 total at 8%, 54 ÷ 1.08 = $50.00 before tax, so the tax is $4.00.

Why can't I just multiply the total by the tax rate?

Because the total already includes the tax, multiplying it by the rate calculates tax on the tax as well. It always overstates the amount — by $0.63 per $100 at 8.25%.

What rate should I use?

The combined rate for the place of sale: state plus county, city, and any special district. Your state revenue department publishes lookup tools by address.

Does this work for VAT or GST?

Yes. VAT and GST inclusive prices are reversed with the same formula: price ÷ (1 + rate). A £120 price at 20% VAT contains £20 of VAT.

Is this tax advice?

No. It is arithmetic. Which sales are taxable, and at what rate, depends on your state and product — confirm with your state revenue department or an accountant.

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