Sales Tax Calculator
Calculate the tax on a price, or work backward from a tax-included total to find the original pre-tax price.
Working backward from a tax-included total isn't as simple as multiplying by the tax rate; dividing by (1 + rate) is what actually isolates the pre-tax price, a mistake that's easy to make when reconciling a receipt. Sales tax rates and rules (what's taxable, whether local surtaxes apply) vary a lot by location, this doesn't look up a real rate for you.
Frequently asked questions
Why can't I just multiply a total by the tax rate to find the tax included in it?+
That overstates the tax. If a $108.50 total includes 8.5% tax, multiplying $108.50 by 8.5% gives $9.22, but the actual tax is only $8.50, because the 8.5% applies to the smaller pre-tax price, not the total. Dividing the total by (1 + rate) is what correctly isolates the pre-tax price first.
Does this look up the actual tax rate for my location?+
No, you enter the rate yourself. Sales tax rates and rules (what's taxable, whether local surtaxes apply) vary significantly by location and this doesn't have that data built in.
When would I need to work backward from a total?+
Reconciling a receipt or invoice where only the final total is shown, or figuring out how much of a price is actually tax for accounting or expense-reporting purposes.