Enter a total price that already includes tax and your sales
tax rate, and this free reverse sales tax calculator works backward to show
the original pre-tax price and the exact tax amount paid. It works for any
US state rate, VAT, or GST, and shows the full calculation so you can check
the math yourself.
✓ Free, no signup✓ Works for all 50 states✓ Shows the working✓ Instant result
Quick answer: To reverse sales tax from a total, divide the total
price by 1 plus the tax rate as a decimal. The formula is
Pre-tax price = Total ÷ (1 + Rate ÷ 100). For example, a $107.25
total at a 7.25% rate gives $107.25 ÷ 1.0725 = $100.00 pre-tax, so
$7.25 was tax. This is also called backing out sales tax or removing
tax from a total.
🧾 Reverse Sales Tax Calculator
Enter the tax-inclusive total and the sales tax rate that applied.
$
%
Not sure of your rate? Check your receipt or your
state's Department of Revenue.
Pre-tax price
—
How to use this reverse sales tax calculator
Enter the total price from your receipt or invoice, the amount
that already includes sales tax.
Enter the sales tax rate that applied to the purchase. Use the
exact combined state and local rate for best accuracy.
Click "Back out the tax" to see the original pre-tax price, the
tax amount paid, and the step-by-step working.
Copy the result for your bookkeeping, expense report, or
invoice reconciliation.
How to reverse sales tax: the formula
Reverse sales tax, also called backing out tax, starts from a
tax-inclusive total and works back to the original price. Because the tax
was added as a percentage of the pre-tax price, you divide rather than
subtract:
Pre-tax price = Total ÷ ( 1 + Rate ÷ 100 )
Tax paid = Total − Pre-tax price
Dividing by "1 plus the rate" removes the tax portion cleanly. Simply
subtracting the percentage from the total would be wrong, because that
percentage was calculated on the smaller pre-tax figure, not on the total.
This same formula works for US sales tax, VAT, GST, and any
percentage-based consumption tax.
Worked example
You paid: $858.00 total, and the sales tax rate was 7.25%.
The item cost $800.00 before tax, and $58.00 went to the taxing
authority. If you had wrongly subtracted 7.25% of $858 instead, you would
have got $795.79, which understates the base price and overstates the tax.
2026 US sales tax rates at a glance
The United States has no federal sales tax; each state sets its own rate,
and most allow local add-ons. The average combined state and local rate is
about 6.44% in 2026. Use your exact local rate in the calculator, since
combined rates differ from the base state rate.
State
Base state rate
Notes
California
7.25%
Highest base rate; up to ~10.75% combined
Texas
6.25%
Up to ~8.25% combined
New York
4.00%
Up to ~8.875% combined
Louisiana / Tennessee
—
Highest combined, about 9.55%
Alaska, Delaware, Montana, New Hampshire, Oregon
0.00%
No statewide sales tax (Alaska allows local up to 7.5%)
Rates change. Always confirm your current combined rate with your state's
Department of Revenue before relying on a figure for tax filing or business
accounting.
Who uses reverse sales tax calculation
Business owners and bookkeepers separating true revenue from
collected tax on tax-inclusive receipts.
Freelancers reconciling expenses where the receipt shows only a
lump-sum total.
Accountants auditing vendor invoices to verify the tax was
charged correctly.
Shoppers checking exactly how much of a total went to tax.
Retailers pricing products at round all-in numbers by working
back to the base price.
More tax and finance calculators
This reverse sales tax calculator is part of the Anchor AI Tools finance
toolkit. For related money math, try our
percentage
calculator to work out any percent, or the
mortgage
calculator to estimate monthly home payments. More state-specific tax
tools are being added to this cluster.
Reverse sales tax FAQs
How do I calculate reverse sales tax?
Divide the tax-inclusive total by 1 plus the tax rate
as a decimal. The formula is Pre-tax price = Total ÷ (1 + Rate ÷ 100).
For a $107 total at 7%, that is $107 ÷ 1.07 = $100 pre-tax, so $7 was
tax.
What is backing out sales tax?
Backing out sales tax means starting from a total that
already includes tax and working backward to find the original pre-tax
price and the tax paid. It is the same as reverse sales tax or removing
tax from a total.
Why can't I just subtract the tax percentage?
Because the tax was a percentage of the smaller pre-tax
price, not of the total. Subtracting the rate from the total removes too
much. Dividing by 1 plus the rate correctly reverses how the tax was
added.
Does this work for all US states?
Yes. The formula is identical in every state; only the
rate changes. Enter your exact combined state and local rate. In
2026, US rates range from 0% in five states to about 9.55% combined in
Louisiana and Tennessee.
Can I use it for VAT or GST?
Yes. The same divide-by-(1 plus rate) method reverses
VAT, GST, HST, or any percentage-based consumption tax. Just enter the
total and the applicable tax rate as a percentage.
What sales tax rate should I enter?
Use the exact rate that applied to your purchase, which
is usually the combined state plus local rate for that location. Your
receipt often lists it, or you can check your state's Department of
Revenue.
Is this reverse sales tax calculator accurate?
The math is exact for the total and rate you enter.
Accuracy depends on using the correct rate. For tax filing or business
accounting, confirm figures with your Department of Revenue or a
qualified tax professional.
Disclaimer: This reverse sales tax calculator from Anchor AI Tools
is provided for general information and educational purposes only and does
not constitute tax, accounting, financial, or legal advice. Sales tax
rates vary by jurisdiction and change over time. Always confirm current
rates with your state's Department of Revenue and consult a qualified tax
professional before making business, tax, or financial decisions.
