Enter the Final Price and Sales Tax Rate into the tool, and the calculator will determine the original price before sales tax.
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The reverse sales tax estimator helps you determine the original cost of a product or service before sales tax is added.
Using a reverse sales tax calculator allows businesses and consumers to identify the pre-tax price of goods or services. This is especially useful for checking overpaid taxes when sales tax rates differ by state. Keeping accurate receipts is key to recovering any excess sales tax paid.
Sales tax is the monetary charge applied as a percentage of the product’s price. The formulas to find the pre-tax price include:
Suppose a product costs $1,000 including a 5% sales tax. Let’s calculate the original price before tax.
Apply the reverse sales tax formula:
Original Price = Final Price / (1 + (Sales Tax / 100))
Original Price = 1000 / (1 + 0.05) = $952.38
This tool simplifies calculating the pre-tax price:
Sales tax is a government-mandated fee on goods and services. Retailers collect it at the point of sale and remit it to the authorities.
To find sales tax from a total amount, subtract the pre-tax price from the total:
Sales Tax = Total Price - Price Before Tax
The net price is the amount the customer pays after tax, while the gross price is the amount before tax. Formulas include:
Sales tax rates vary across states. The table below reflects rates as of July 1, 2023.
| State | State Tax Rate | Rank | Avg. Local Tax Rate | Combined Rate | Rank | Max Local Tax Rate |
|---|---|---|---|---|---|---|
| Alabama | 4.00% | 40 | 5.237% | 9.237% | 5 | 7.50% |
| Alaska | 0.00% | 46 | 1.813% | 1.813% | 46 | 7.50% |
| Arizona | 5.60% | 28 | 2.771% | 8.371% | 11 | 5.30% |
| Arkansas | 6.50% | 9 | 2.943% | 9.443% | 3 | 6.13% |
| California (a) | 7.25% | 1 | 1.601% | 8.851% | 7 | 4.75% |
| Colorado | 2.90% | 45 | 4.891% | 7.791% | 15 | 8.30% |
| Connecticut | 6.35% | 12 | 0.000% | 6.350% | 33 | 0.00% |
| Delaware | 0.00% | 46 | 0.000% | 0.000% | 47 | 0.00% |
| Florida | 6.00% | 17 | 1.019% | 7.019% | 24 | 2.00% |
| Wisconsin | 5.00% | 32 | 0.429% | 5.429% | 44 | 1.75% |
| Wyoming | 4.00% | 40 | 1.441% | 5.441% | 43 | 2.00% |
| D.C. | 6.00% | 0.000% | 6.000% | 0.000% |
From Taxfoundation.org: Reverse Sales Tax & Combined Rates
From Wikipedia.org: US Sales Tax Overview & Taxable Items
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