Answers the Question
What did a product cost before tax?
Calculator for Reverse Sales Tax
What Is the Reverse Sales Tax?
Given a product's post-tax price, it's often useful to understand how much of the price is attributable to tax and how much to product.
Why Is it Important?
- Often, knowing the post-tax price in one municipality will provide little information of value to a person who is not subject to the same tax structures.
Formula(s) to Calculate Reverse Sales Tax
- PRETAX PRICE = POSTTAX PRICE / (1 + TAX RATE)
- Not all products are taxed at the same rate, or even taxed at all, in a given municipality.