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Reverse Sales Tax Calculator

Calculate the original price before tax - Free sales tax reverse calculator

Enter the total amount you paid including sales tax
Enter the sales tax rate percentage for your location

Sales Tax Rates by Jurisdiction

Understanding sales tax rates in different locations helps you accurately calculate reverse sales tax. Below are the current tax rates for major jurisdictions.

State & Local Sales Tax Rates in the US

Combined state and average local sales tax rates for all 50 U.S. states (updated 2025):

Note: Alaska, Delaware, Montana, New Hampshire, and Oregon have no statewide sales tax. Some localities in these states may impose local sales taxes.

State State Rate Avg. Local Rate Combined Rate
Alabama 4.00% 5.29% 9.29%
Alaska * 0.00% 1.76% 1.76%
Arizona 5.60% 2.82% 8.42%
Arkansas 6.50% 2.99% 9.49%
California 7.25% 1.81% 9.06%
Colorado 2.90% 4.96% 7.86%
Connecticut 6.35% 0.00% 6.35%
Delaware * 0.00% 0.00% 0.00%
Florida 4.00% 3.05% 7.05%
Georgia 4.00% 3.36% 7.36%
Hawaii 4.00% 0.50% 4.50%
Idaho 6.00% 0.03% 6.03%
Illinois 6.25% 2.59% 8.84%
Indiana 7.00% 0.00% 7.00%
Iowa 6.00% 0.95% 6.95%
Kansas 6.50% 2.29% 8.79%
Kentucky 6.00% 0.00% 6.00%
Louisiana 4.45% 5.10% 9.55%
Maine 5.50% 0.00% 5.50%
Maryland 6.00% 0.00% 6.00%
Massachusetts 6.25% 0.00% 6.25%
Michigan 6.00% 0.00% 6.00%
Minnesota 6.88% 0.70% 7.58%
Mississippi 7.00% 0.08% 7.08%
Missouri 4.23% 4.12% 8.35%
Montana * 0.00% 0.00% 0.00%
Nebraska 5.50% 1.55% 7.05%
Nevada 6.85% 1.53% 8.38%
New Hampshire * 0.00% 0.00% 0.00%
New Jersey 6.63% 0.02% 6.65%
New Mexico 5.13% 2.82% 7.95%
New York 4.00% 4.54% 8.54%
North Carolina 4.75% 2.25% 7.00%
North Dakota 5.00% 2.23% 7.23%
Ohio 5.75% 1.56% 7.31%
Oklahoma 4.50% 4.49% 8.99%
Oregon * 0.00% 0.00% 0.00%
Pennsylvania 6.00% 0.34% 6.34%
Rhode Island 7.00% 0.00% 7.00%
South Carolina 6.00% 1.51% 7.51%
South Dakota 4.20% 1.99% 6.19%
Tennessee 7.00% 2.55% 9.55%
Texas 6.25% 1.94% 8.19%
Utah 6.10% 1.19% 7.29%
Vermont 6.00% 0.37% 6.37%
Virginia 5.30% 0.52% 5.82%
Washington 6.50% 2.72% 9.22%
West Virginia 6.00% 0.59% 6.59%
Wisconsin 5.00% 0.64% 5.64%
Wyoming 4.00% 1.44% 5.44%

* States with no statewide sales tax. Note: Local rates vary by city and county. Always verify the exact rate for your specific location.

Canadian Sales Tax Rates (GST/HST/PST)

Canada uses a combination of federal GST and provincial PST/HST taxes:

Province/Territory Tax Type Total Rate
Ontario HST 13%
Quebec GST + QST 14.975%
British Columbia GST + PST 12%
Alberta GST only 5%
Nova Scotia HST 14%
New Brunswick HST 15%
Manitoba GST + PST 12%
Saskatchewan GST + PST 11%

European VAT Rates

Value Added Tax (VAT) rates for major European countries:

Country Standard VAT Rate Reduced Rate
France 20% 5.5% / 10%
Germany 19% 7%
United Kingdom 20% 5%
Italy 22% 4% / 10%
Spain 21% 4% / 10%
Netherlands 21% 9%
Sweden 25% 6% / 12%
Belgium 21% 6% / 12%
Poland 23% 5% / 8%
Ireland 23% 9% / 13.5%

Other Major Countries

Country Tax Name Standard Rate
Australia GST 10%
New Zealand GST 15%
Japan Consumption Tax 10%
South Korea VAT 10%
India GST 5% / 12% / 18% / 28%
Singapore GST 9%
Mexico IVA 16%
Brazil ICMS 17-20% (varies by state)

Understanding Different Tax Jurisdictions

Sales taxes vary significantly across different locations and governments. Here's what you need to know about tax jurisdictions:

United States Tax Structure

The U.S. has a complex multi-tiered tax system:

  • State Sales Tax: Imposed by 45 states (Alaska, Delaware, Montana, New Hampshire, and Oregon have no state sales tax)
  • County Tax: Many counties add their own tax on top of state rates
  • City/Local Tax: Cities and special districts may impose additional taxes
  • Combined Rate: The total of all applicable taxes in your specific location

Example: In Chicago, Illinois, you pay 6.25% state tax + 1.25% county tax + 1.25% city tax = 8.75% total.

Canadian GST/HST/PST System

  • GST (Goods and Services Tax): Federal tax of 5% applied across Canada
  • PST (Provincial Sales Tax): Additional provincial tax in some provinces
  • HST (Harmonized Sales Tax): Combined GST+PST in certain provinces (Ontario, Nova Scotia, etc.)
  • QST (Quebec Sales Tax): Quebec's provincial tax, calculated differently than other provinces

European VAT System

Value Added Tax (VAT) in Europe works differently from sales tax:

  • Included in Price: VAT is typically included in displayed prices, unlike U.S. sales tax
  • Standard vs Reduced Rates: Different rates for essential goods, luxury items, services
  • Cross-Border: Special rules apply for international transactions within the EU
  • Business Reclaim: Registered businesses can reclaim VAT on purchases

Origin vs Destination-Based Taxation

  • Destination-Based: Tax rate where buyer receives the product (most common for online sales)
  • Origin-Based: Tax rate where seller is located (used in some states for intrastate sales)
  • E-commerce Impact: Online sellers must collect tax based on buyer's location in most jurisdictions

Tax-Exempt Purchases

Not all purchases are taxable. Common exemptions include:

  • Groceries and unprepared food (varies by state/country)
  • Prescription medications
  • Medical devices and equipment
  • Educational materials and textbooks
  • Resale purchases by registered businesses
  • Non-profit organization purchases (with proper documentation)

Frequently Asked Questions

What is a reverse sales tax calculator?

A reverse sales tax calculator is a tool that calculates the original price of an item before sales tax was added. Instead of adding tax to find the final price, it works backwards from the total price (including tax) to determine the pre-tax amount. This is useful for accounting, budgeting, and understanding how much of your purchase was actual product cost versus tax.

How do you calculate reverse sales tax?

To calculate reverse sales tax, divide the final price by (1 + tax rate as a decimal). For example, if you paid $108 with an 8% tax rate, divide $108 by 1.08 to get $100 as the original price. The formula is: Original Price = Final Price ÷ (1 + Tax Rate/100). The tax amount is then the difference between the final price and original price.

Why would I need to reverse calculate sales tax?

You might need this calculation for several reasons: accounting and bookkeeping to separate tax from revenue, budgeting to know actual product costs, business expense tracking to report pre-tax amounts, comparing prices across different jurisdictions, or preparing tax returns where you need to break down total payments into taxable amounts and tax paid.

Is this reverse sales tax calculator accurate?

Yes, our reverse sales tax calculator uses the standard mathematical formula for reverse tax calculation and provides accurate results to two decimal places. The calculator instantly computes the original price and tax amount based on your inputs. However, always verify calculations for official financial or tax reporting purposes.

Can I use this for different tax rates?

Absolutely! This tool works with any tax rate from 0% to 100%. Simply enter your specific rate (like 6.5%, 8.875%, or any other percentage) and it will compute the results accurately. This makes it useful for any location or jurisdiction regardless of their tax rates.

What's the difference between forward and reverse sales tax calculation?

Forward sales tax calculation adds tax to a pre-tax price (Price × Tax Rate = Tax Amount), while reverse sales tax calculation works backwards from a total price including tax to find the original pre-tax price. Forward: $100 + 8% = $108. Reverse: $108 with 8% tax = $100 original price. This reverse calculator performs the latter calculation.

Is this calculator free to use?

Yes, this tool is completely free with no registration, downloads, or hidden fees. You can perform unlimited calculations as many times as you need. It works on all devices including desktop computers, tablets, and mobile phones.

How do I find my local sales tax rate?

You can find your local sales tax rate by checking your state's Department of Revenue website, looking at recent receipts from local purchases, using your state's sales tax lookup tool, or contacting your local tax authority. Remember that your total rate may include state, county, and city taxes combined.

Can I calculate reverse tax for multiple items at once?

Yes, simply add up all your final prices to get one total amount (including tax), then enter that total along with the tax rate. The calculator will determine the combined original price and total tax paid for all items together.

Does this work for VAT calculations in Europe?

Absolutely! This reverse calculator works for any type of consumption tax including VAT (Value Added Tax), GST (Goods and Services Tax), HST (Harmonized Sales Tax), or any other percentage-based tax. Simply enter the total price and the VAT/GST rate for your country.

What if my receipt shows tax but not the tax rate?

If you know the tax amount and final total, you can calculate the rate: divide the tax amount by the subtotal (final price - tax amount), then multiply by 100. For example: $7.50 tax on $100 subtotal = (7.50 ÷ 100) × 100 = 7.5% tax rate.

Why do businesses need reverse sales tax calculations?

Businesses use reverse tax calculations for accurate financial reporting, separating revenue from collected tax, reconciling sales tax remittance to tax authorities, preparing income statements, tracking deductible business expenses, and ensuring compliance with accounting standards that require reporting pre-tax revenue.

Can I use this for online purchases from different states?

Yes, this calculator works for any purchase regardless of where it was made. Online purchases typically use destination-based taxation (the tax rate where you receive the item). Just enter the final amount you paid and the tax rate that was charged on your order.

How accurate is the reverse sales tax calculation?

The calculator provides mathematically precise results rounded to two decimal places (cents). The accuracy depends on entering the correct final price and exact tax rate. Minor differences (usually 1-2 cents) may occur due to how merchants round tax calculations during the original sale.

What's the difference between inclusive and exclusive tax pricing?

Tax-inclusive pricing (common in Europe/Canada) shows the final price with tax already included. Tax-exclusive pricing (common in the U.S.) shows the base price with tax added at checkout. This reverse calculator works for both - just enter the final amount you actually paid and the applicable tax rate.

Can I save my calculation results?

While the calculator doesn't automatically save results, you can easily screenshot the results, copy the numbers to a spreadsheet, or write them down for your records. For business purposes, we recommend keeping receipts alongside your calculated breakdown for tax and accounting documentation.

About This Tool

This reverse sales tax calculator is a powerful and easy-to-use tool designed to help individuals, business owners, accountants, and anyone who needs to calculate pre-tax amounts quickly and accurately. Whether you're managing business expenses, tracking personal finances, or preparing tax documents, it provides instant and precise results.

Key Features

  • Instant Calculations: Get immediate results with detailed breakdowns
  • Accurate Results: Precise calculations to 2 decimal places
  • Detailed Breakdown: See both the original price and tax amount separately
  • Any Tax Rate: Works with any percentage from 0% to 100%
  • Mobile Friendly: Use on any device - phone, tablet, or computer
  • Free & Unlimited: No registration or payment required
  • Privacy Focused: All calculations happen in your browser

Who Benefits from This Tool?

This calculator is valuable for:

  • Business Owners: Track revenue vs tax collected, reconcile accounts
  • Accountants & Bookkeepers: Separate taxable amounts from tax for financial reporting
  • Freelancers: Calculate pre-tax costs for expense tracking and invoicing
  • Shoppers: Understand actual product costs vs tax paid
  • Tax Professionals: Quickly determine pre-tax amounts for client returns
  • Students: Learn about sales tax calculations and financial math

Understanding the Calculation Process

When calculating backwards from a final price, you're essentially solving the equation in reverse. Here's the mathematical approach:

If a final price includes tax, the relationship is: Final Price = Original Price × (1 + Tax Rate)

To find the original price, we rearrange: Original Price = Final Price ÷ (1 + Tax Rate)

For example, with a $107.50 total and 7.5% tax rate:

  • Convert tax rate: 7.5% = 0.075
  • Calculate multiplier: 1 + 0.075 = 1.075
  • Divide: $107.50 ÷ 1.075 = $100.00 (original price)
  • Find tax: $107.50 - $100.00 = $7.50 (tax amount)

Common Use Cases

Here are practical scenarios where this tool is helpful:

  • Expense Reporting: Many companies require pre-tax amounts for reimbursements
  • Financial Statements: Separate revenue from sales tax collected
  • Price Comparison: Compare actual product costs across different tax jurisdictions
  • Budgeting: Determine how much of your budget goes to products vs taxes
  • Tax Compliance: Calculate tax liability when you only have final totals
  • Invoice Verification: Check if vendors correctly calculated sales tax

Tips for Best Results

  • Always enter the complete final price including all tax amounts
  • Use the exact tax rate percentage for your location (check local government websites)
  • Remember that some locations have combined state, county, and city taxes
  • For multiple items, calculate the total first, then work backwards
  • Save your results for record-keeping and tax purposes

References & Sources

Our tax rate data and information are compiled from authoritative sources to ensure accuracy and reliability. All rates are verified as of 2025.

Official Government Sources

Tax Research Organizations

State-Specific Resources

International Tax Resources

Additional Resources

  • Sales Tax Institute: Professional sales tax education and research
  • Streamlined Sales Tax Governing Board: Multi-state tax simplification initiative
  • PwC Worldwide Tax Summaries: Global tax rate references

Disclaimer: While we strive to maintain accurate and up-to-date tax rate information from reliable sources, tax rates can change frequently. Always verify current rates with your local tax authority or a qualified tax professional for official tax matters. This calculator is for informational purposes only and does not constitute professional tax, legal, or financial advice.

Last Updated: November 2025 | Tax rates are subject to change. We recommend checking official government sources for the most current information.