How To Remove Tax From a Total Price (Step-by-Step)
Need to strip the tax out of a receipt total? This guide walks through the exact formula and gives you real examples for every scenario.
The One Formula You Need
To remove sales tax from a total price, divide by (1 + tax rate). That's it. Here it is written out:
Pre-Tax Price = Total Price ÷ (1 + Tax Rate ÷ 100)If your total was $107.50 and the tax rate is 7.5%:
$107.50 ÷ 1.075 = $100.00Step-by-Step for Any Amount
- Find your total price paid (from your receipt)
- Find the applicable sales tax rate (state + local combined)
- Divide the total by (1 + rate ÷ 100)
- The result is your pre-tax price
- Subtract from total to get the exact tax amount
Why This Works
When tax was added, the merchant multiplied your pre-tax price by (1 + rate). To undo that, you divide by the same number. Division is the inverse of multiplication.
Common Rates and Their 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 |
Use the Calculator
You can do this manually, but our reverse sales tax calculator handles it instantly. Enter the total and rate, get the pre-tax price immediately.
Common Questions
How do I remove 8% sales tax from a total?▼
Divide the total by 1.08. For example: $108 ÷ 1.08 = $100.00 original price.
What if the tax rate includes both state and local taxes?▼
Add them together to get the combined rate, then use that in the formula. If state is 6% and local is 1.5%, use 7.5% as the rate.
Is there a quick way to do this without a calculator?▼
For rough estimates, yes. But for accurate bookkeeping, always use the exact formula or a reverse tax calculator. The quick subtraction method introduces errors.
Ready to calculate?
Use our free reverse sales tax calculator to find any pre-tax price instantly.
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