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.

By Amara TaylorFree, no signup

Why use this calculator

Reverse sales tax calculator

Results update as you type

Enter a total greater than 0.

Enter a rate from 0 up to, but not including, 100.

Combined state and local rate from your receipt

Pre-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 price

    Tax 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

    1. Divide: $858.00 ÷ 1.0725 = $800.00 pre-tax
    2. Subtract: $858.00 − $800.00 = $58.00 tax
    3. 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.

    StateBase state rateAvg combined (2026)Notes
    Louisiana5.00%10.13%Highest combined since 2025
    Tennessee7.00%9.61%Second highest combined
    Washington6.50%9.57%High local add-ons
    Arkansas6.50%9.48%–
    Alabama4.00%9.46%Largest local component
    California7.25%about 8.99%Highest base rate, over 10% in some cities
    Texas6.25%–Up to about 8.25% combined
    New York4.00%–Up to about 8.875% combined
    AK, DE, MT, NH, OR0.00%–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.

    Working the other way?

    To add tax or find a percentage of a price, use the percentage calculator.

    Open the percentage calculator

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    Amara Taylor, who builds and maintains Anchor AI Tools
    Written and checked by Amara Taylor

    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.