Reverse Sales Tax Calculator

Reverse Sales Tax Calculator – Find the Original Price Before Tax

A Reverse Sales Tax Calculator helps you determine the original net price of a product and the exact amount of sales tax paid when you already know the total price paid and the sales tax rate. This type of calculator is useful when prices are listed as tax-inclusive, which is common in many regions and receipts.

Instead of adding tax to a price, a reverse sales tax calculator works backward to separate the tax from the final amount.

What Is a Reverse Sales Tax Calculator?

A reverse sales tax calculator allows you to calculate:

• The original price before sales tax
• The sales tax amount included in the total
• The tax-exclusive value of a purchase

This is especially helpful when reviewing receipts, processing refunds, preparing accounting records, or verifying tax charges.

When Do You Need a Reverse Sales Tax Calculator?

You may need to reverse calculate sales tax in situations such as:

• A receipt only shows the total price
• Prices are advertised as tax-inclusive
• You need to report net sales for accounting
• You are calculating reimbursements or refunds
• You want to confirm how much tax was paid

Reverse Sales Tax Formula

To calculate the original price before tax, use the following formula:

Net Price = Total Price ÷ (1 + Sales Tax Rate)

To calculate the tax amount:

Sales Tax Amount = Total Price − Net Price

Example Formula (Using Percentage)

If the sales tax rate is given as a percentage, convert it to a decimal before using the formula.

• 10% → 0.10
• 16% → 0.16

Reverse Sales Tax Calculation Example

Given:

• Total price paid = 116
• Sales tax rate = 16%

Step 1: Calculate net price

Net Price = 116 ÷ (1 + 0.16)
Net Price = 116 ÷ 1.16
Net Price = 100

Step 2: Calculate tax amount

Sales Tax = 116 − 100
Sales Tax = 16

Result:

• Original price before tax = 100
• Sales tax paid = 16

How to Use the Reverse Sales Tax Calculator

Using an online reverse sales tax calculator is simple:

1. Enter the total price paid
2. Enter the sales tax rate
3. Click Calculate
4. View the net price and tax amount

The calculator performs the formula automatically and presents the results clearly.

Reverse Sales Tax vs Regular Sales Tax Calculator

Calculator Type	What It Calculates
Sales Tax Calculator	Final price after tax
Reverse Sales Tax Calculator	Original price before tax

A reverse sales tax calculator is ideal when the tax has already been applied and you need to break it down.

Common Sales Tax Rates

Sales tax rates vary by country, state, or region. Common rates include:

• 5%
• 7%
• 10%
• 15%
• 16%
• 20%

Always ensure you use the correct tax rate for accurate calculations.

Benefits of Using a Reverse Sales Tax Calculator

• Eliminates manual calculations
• Reduces accounting errors
• Saves time for businesses and individuals
• Helps with budgeting and tax reporting
• Useful for invoices, receipts, and refunds

Final Thoughts

A Reverse Sales Tax Calculator is an essential tool when you need to determine the original price of a product before tax and identify the exact amount paid in sales tax. By entering the total price and the tax rate, you can instantly separate tax from the final amount with confidence.

Whether you are managing finances, reviewing receipts, or preparing records, a reverse sales tax calculator provides clarity and accuracy in every calculation.