Welcome to our Reverse Sales Tax Calculator page!
Here you will find a user-friendly tool that allows you to calculate the pre-tax price of any product or service.
By understanding the original price of a product or service before taxes were added, you can make better decisions about your purchases or plan your budget more effectively.
Our calculator takes into account the final price and the sales tax rate, providing you with an accurate estimate of the original price before taxes were added.
Whether you’re a consumer looking to budget for your purchases, or a business owner looking to understand the cost of your goods and services, our reverse sales tax calculator has got you covered.
What is Reverse Sales Tax?
Reverse sales tax is a process of determining the original price of a product or service before the sales tax was added.
It can be useful for consumers who want to know the original price of a product or service, or for businesses who want to know the pre-tax cost of their goods or services for accounting and budgeting purposes.
The formula for reverse sales tax calculation is based on 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 $1000 and the sales tax rate is 10%, the formula for calculating the pre-tax price would be:
Pre-Tax Price = Final Price / (1 + (Sales Tax Rate / 100))