How is sales tax reversed from a total?
Pre-Tax Price = Total Price / (1 + (Tax Rate / 100)). For example, an item costing $108 with an 8% tax rate has a pre-tax price of $108 / 1.08 = $100.
Calculate sales tax, reverse tax from gross price, and find net totals.
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Input the pre-tax net price or total gross price.
Type your local state, city, or country sales tax / VAT rate.
See exact tax amount in dollars and final total balance.
Pre-Tax Price = Total Price / (1 + (Tax Rate / 100)). For example, an item costing $108 with an 8% tax rate has a pre-tax price of $108 / 1.08 = $100.
Sales tax is collected once at the final retail point of sale to the consumer, whereas Value-Added Tax (VAT) is collected incrementally at each stage of the supply chain.