Reverse Sales Tax Calculator

Are you tired of wondering what the original price of a product or service was before the sales tax was added?

Our reverse sales tax calculator is here to help. With our easy-to-use calculator, you can quickly and easily calculate the pre-tax price of any product or service.

What is Reverse Sales Tax?

Reverse sales tax is a method of calculating the original pre-tax price of a product or service. It is used to understand the original price of a product or service before taxes were added and is particularly useful for businesses that want to know the pre-tax cost of their goods or services for accounting and budgeting purposes.

Reverse Sales Tax Formula

The formula for calculating reverse sales tax is relatively simple.

It is based on the principle of dividing the final price by the sum of 1 and the sales tax rate expressed as a decimal.

For example, if the final price of a product is $100 and the sales tax rate is 8%, the formula for calculating the pre-tax price would be:

Pre-Tax Price = Final Price / (1 + (Sales Tax Rate / 100))

Uses of Reverse Sales Tax

Reverse Sales Tax calculation is particularly useful for consumers who want to know the original price of a product or service before taxes were added, or for businesses that want to know the pre-tax cost of their goods or services for accounting and budgeting purposes.

It can also be used for people who are shopping in different states and want to compare prices with their home states sales tax.

It is also useful for businesses that are importing or exporting goods and need to calculate the pre-tax cost for customs and tariffs.

Our Reverse Sales Tax Calculator

Our Reverse Sales Tax Calculator uses this formula to provide you with an accurate and reliable estimate of the pre-tax price of any product or service.

With our calculator, you can quickly and easily understand the original price of a product or service before taxes were added, and make informed decisions.