How to Calculate Original Price Before Tax
Our reverse sales tax calculator helps you determine the pre-tax price when you only know the total amount paid including tax. This is useful for:
- Analyzing receipts to understand pre-tax costs
- Calculating business expenses for tax deductions
- Determining the actual item cost before sales tax
- Verifying tax amounts on invoices and purchases
Step-by-Step Guide:
- Enter the total amount paid (including tax)
- Input the applicable tax rate percentage (e.g., 7 for 7%)
- Click "Calculate Original Price Before Tax"
- View the breakdown of original price and tax amount
Reverse Tax Calculation Formula:
Original Price = Total Amount / (1 + (Tax Rate / 100))
This formula mathematically reverses the standard tax calculation to find the original price.
Common U.S. Sales Tax Rates
- California: 7.25%
- Texas: 6.25%
- New York (NYC): 8.875%
- Florida: 6%
- Illinois: 6.25%
- Pennsylvania: 6%
*Local jurisdictions may add additional taxes
Example Calculation
Scenario: You paid $107.50 with 7.5% tax
Calculation:
$107.50 ÷ 1.075 = $100.00 (original price)
$100.00 × 0.075 = $7.50 (tax amount)