Reverse Sales Tax Calculator: Back Out Tax From a Total
Enter a price that already includes tax and the rate, and see the original pre-tax price and the exact tax paid. Works for any US state rate, VAT or GST.
Why use this calculator
- Exact pre-tax price and tax paid in one step
- Works for any US state rate, VAT or GST
- Formula and working shown for every result
- Free, no signup, runs in your browser
Reverse sales tax calculator
Results update as you typeEnter a total greater than 0.
Enter a rate from 0 up to, but not including, 100.
Combined state and local rate from your receiptPre-tax price
$800.00
Quick answer: Divide the total by 1 plus the tax rate as a decimal: pre-tax price = total ÷ (1 + rate ÷ 100). A $107.25 total at 7.25% is $107.25 ÷ 1.0725 = $100.00 before tax, so $7.25 was tax.
How to reverse sales tax: the formula
pre-tax price = total ÷ (1 + rate ÷ 100)Tax paid = total − pre-tax priceTax was added as a percentage of the pre-tax price, so you divide rather than subtract. Taking 7.25% off the total would be wrong because that percentage was worked out on the smaller figure. The same method works for US sales tax, VAT, GST and any percentage-based consumption tax.
Worked example
You paid $858.00 at a 7.25% rate
- Divide: $858.00 ÷ 1.0725 = $800.00 pre-tax
- Subtract: $858.00 − $800.00 = $58.00 tax
- Check forwards: $800.00 × 1.0725 = $858.00
Result: $800.00 before tax, $58.00 tax
The common mistake: subtracting the rate
Taking 7.25% of $858 and subtracting it gives $795.79, which understates the price by $4.21 and overstates the tax by the same amount.
2026 US sales tax rates at a glance
There is no federal sales tax. Each state sets its own rate and most allow local add-ons. The population-weighted average combined rate is 7.53% in 2026, per the Tax Foundation.
| State | Base state rate | Avg combined (2026) | Notes |
|---|---|---|---|
| Louisiana | 5.00% | 10.13% | Highest combined since 2025 |
| Tennessee | 7.00% | 9.61% | Second highest combined |
| Washington | 6.50% | 9.57% | High local add-ons |
| Arkansas | 6.50% | 9.48% | – |
| Alabama | 4.00% | 9.46% | Largest local component |
| California | 7.25% | about 8.99% | Highest base rate, over 10% in some cities |
| Texas | 6.25% | – | Up to about 8.25% combined |
| New York | 4.00% | – | Up to about 8.875% combined |
| AK, DE, MT, NH, OR | 0.00% | – | No statewide sales tax (Alaska allows local) |
Rates change, so confirm your current combined rate with your state Department of Revenue before using a figure for filing or accounting.
Who uses reverse sales tax
- Business owners and bookkeepers separating revenue from collected tax.
- Freelancers reconciling expenses from lump-sum receipts.
- Accountants checking vendor invoices charged tax correctly.
- Retailers setting round all-in prices and working back to the base price.
- Shoppers checking how much of a total went to tax.
Frequently asked questions
How do I calculate reverse sales tax?
Divide the tax-inclusive total by 1 plus the tax rate as a decimal: pre-tax price = total ÷ (1 + rate ÷ 100). A $107 total at 7% is $107 ÷ 1.07 = $100 before tax, so $7 was tax.
What is backing out sales tax?
Starting from a total that already includes tax and working back to the original 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?
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 reverses it correctly.
Does this work for all US states?
Yes. The formula is the same everywhere, only the rate changes. In 2026 combined rates run from 0% in five states to about 10.13% in Louisiana.
Can I use it for VAT or GST?
Yes. The same divide-by-(1 + rate) method reverses VAT, GST, HST or any percentage-based consumption tax.
What sales tax rate should I enter?
The exact rate that applied to your purchase, usually the combined state and local rate. Your receipt often shows it, or check your state Department of Revenue.
Learn the method
Step-by-step guide to backing tax out of any receipt, with state examples and the most common mistake.
To add tax or find a percentage of a price, use the percentage calculator.
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Content Lead, Anchor AI Tools, California, USA. Spotted an error? Email hello@anchoraitools.com and it will be checked and corrected. See our editorial standards.
Accuracy note: The maths is exact for the total and rate you enter. The rate table is rebuilt from Tax Foundation 2026 data. Confirm current rates with your state Department of Revenue for filing or accounting.