Reverse Tax Calculator – Find Price Before Tax
Calculate original price before tax from a total
Table of Contents
How to Use
- Enter the total amount (with or without tax)
- Enter the applicable tax rate percentage
- Select whether the amount includes or excludes tax
- Click calculate to see the breakdown
- Review the original price, tax amount, and total
What is Reverse Tax Calculation?
Reverse tax calculation is the process of determining the original price before tax was added, starting from a tax-inclusive total. This is useful when you see a final price and need to know how much of it is the actual product cost versus the tax.
The formula for reverse tax calculation is: Original Price = Total Price ÷ (1 + Tax Rate). For example, if a product costs $110 with 10% tax included, the original price is $110 ÷ 1.10 = $100.
When to Use This Calculator
- Determining the pre-tax cost from a receipt total
- Calculating business expense deductions
- Verifying tax charges on invoices
- Comparing pre-tax prices across different tax jurisdictions
- Accounting and bookkeeping purposes
- Understanding how much tax you actually paid
Tax-Inclusive vs Tax-Exclusive Pricing
Tax-inclusive pricing (common in many countries) shows the final price including all taxes. Tax-exclusive pricing (common in the US) shows the base price with tax added at checkout. Understanding which system is used is essential for accurate calculations.
Common Tax Rates by Region
- US Sales Tax: 0-10.25% (varies by state/locality)
- UK VAT: 20% (standard rate)
- EU VAT: 17-27% (varies by country)
- Canada GST/HST: 5-15% (varies by province)
- Australia GST: 10%
- Japan Consumption Tax: 10%
Frequently Asked Questions
- How do I calculate the price before tax?
- Divide the tax-inclusive total by (1 + tax rate as decimal). For 8% tax: divide by 1.08. For 10% tax: divide by 1.10. This calculator does this automatically when you select 'Tax Included'.
- What's the difference between inclusive and exclusive tax?
- Inclusive means the price shown already contains tax. Exclusive means tax will be added to the shown price. Use 'Tax Included' to find the pre-tax price, 'Tax Excluded' to calculate what you'll pay after tax.
- Can I use this for VAT calculations?
- Yes, this calculator works for any percentage-based tax including VAT, sales tax, GST, HST, or any other consumption tax. Just enter the applicable rate.
- Why doesn't the tax percentage of the total equal my tax rate?
- When tax is included in the total, the tax amount as a percentage of the total is actually lower than the tax rate. A 10% tax on $100 = $10, but $10 is only 9.09% of the $110 total.