The Fastest Method
To remove sales tax from a final total, divide the total by 1 plus the tax rate expressed as a decimal.
Pre-Tax Price = Total Price / (1 + Tax Rate / 100)Example
If your total is $107.50 and the tax rate is 7.5%, use:
$107.50 / 1.075 = $100.00Step-by-Step Process
- Find the final amount paid on the receipt
- Find the combined tax rate for the purchase location
- Divide the total by 1 plus that rate
- Use the result as the original pre-tax amount
- Subtract it from the total if you also want the tax amount
Common Divisors
| Tax Rate | Divide Total By |
|---|---|
| 6% | 1.06 |
| 6.5% | 1.065 |
| 7% | 1.07 |
| 7.5% | 1.075 |
| 8% | 1.08 |
| 8.25% | 1.0825 |
| 8.5% | 1.085 |
| 8.875% | 1.08875 |
| 9% | 1.09 |
| 10% | 1.1 |
| 10.25% | 1.1025 |
Avoid the Shortcut Error
The common mistake is subtracting the percentage from the final amount instead of dividing. That shortcut gives an estimate, not the actual pre-tax price.