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Reverse sales tax calculator

Work backwards from a total that includes tax to the price before tax and the tax itself. Works for US sales tax, GST and VAT, and shows the rounding.

Private: calculated on your device. Nothing you type is sent anywhere.

Estimates for planning, not financial, tax or legal advice. Figures use US rules unless the page says otherwise.

Next: Need to add tax to a price or find the rate from a receipt? Use the sales tax calculator.

What this calculator does

When a price already includes tax, this finds the price before tax and how much of the total is tax. Use it for a US receipt, an expense report, or a price that includes GST or VAT, such as in Canada, Australia, New Zealand, India or the UK. It also checks the rounding: it finds the whole-cent price that really produces your total, which a simple division can miss.

To add tax to a price or find a rate from two prices, use the sales tax calculator.

How it's calculated

Price before tax = total ÷ (1 + rate ÷ 100)
Tax = total − price before tax
Tax fraction of the total = rate ÷ (100 + rate)

The tax fraction is what the UK's HMRC calls the VAT fraction. At 20% it's 20/120, or 1/6, so a VAT-inclusive price is one-sixth VAT. If two taxes are each charged on the pre-tax price, such as a state and a city rate or a federal and a provincial rate, add the rates first.

Why you can't just take the rate off the total

Tax is worked out on the smaller, pre-tax price. Taking 7.25% off $107.25 gives $99.47, but 7.25% tax on $99.47 is only $7.21, for a total of $106.68. The right answer is $107.25 ÷ 1.0725 = $100.00.

Worked example with rounding

A receipt shows $54.99 at 8.875%:

54.99 ÷ 1.08875 = 50.5074… → $50.51
Check: 50.51 × 8.875% = 4.4828 → $4.48 tax · 50.51 + 4.48 = $54.99 ✓

Sometimes no whole-cent price works. At 8.875%, a pre-tax $40.50 gives $44.09 (tax $3.594, rounded to $3.59) and $40.51 gives $44.11 (tax $3.595, rounded to $3.60), so no price gives exactly $44.10. If a total can't be reached, the store may have rounded per item or used a different rate, and the calculator tells you the nearest prices.

Tax fractions for common rates

RateDivide total byShare of the total that's tax
5%1.051/21 = 4.76%
6%1.063/53 = 5.66%
7%1.077/107 = 6.54%
8%1.082/27 = 7.41%
10%1.101/11 = 9.09%
13%1.1313/113 = 11.50%
15%1.153/23 = 13.04%
20%1.201/6 = 16.67%

Limitations

  • Rounding rules differ. Some sellers round tax on each line and some on the whole bill, so a multi-item receipt can be off by a cent or two.
  • If some items are taxed at a lower rate or not at all, one rate won't fit the whole receipt.
  • Some taxes are charged on top of another tax rather than on the pre-tax price. In that case adding the rates isn't exact.
  • Rates change, so check your state, province or country's tax authority for the current one.

Sources

How we checked this

Before every update, this calculator is run in a real browser with these known answers, and it must match all of them:

  • $107.25 at 7.25%: $100.00 before tax ✓
  • $54.99 at 8.875%: $50.51, tax $4.48 ✓
  • £120 at 20% VAT: tax fraction 1/6 ✓
  • 6% + 1% on $53.50: $50.00 ✓
  • $44.10 at 8.875% can't be reached exactly ✓

Last checked October 26, 2026. Spotted something wrong? The math is done in your browser with the formula shown on this page, so you can check any result by hand.

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Questions people ask

How do I calculate reverse sales tax?

Divide the total by 1 plus the tax rate as a decimal. $107.25 at 7.25% is 107.25 ÷ 1.0725 = $100.00 before tax.

How do I remove GST from a price?

Divide the GST-inclusive price by 1 plus the GST rate. At 10% that's ÷ 1.10, which is the same as taking off 1/11 of the price. At 5%, divide by 1.05.

How do I work out VAT from a gross amount?

Multiply the gross amount by rate ÷ (100 + rate). At 20% that's 1/6, so £120 includes £20 VAT.

Why is the tax not just the rate times the total?

Because the tax was charged on the pre-tax price, which is smaller than the total. Taking the rate off the total removes too much.

What if two taxes apply?

If both are charged on the pre-tax price, add the two rates and divide by 1 plus the combined rate.

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