Sales Tax Calculator · Practical guide
How to Remove Sales Tax From a Total Price
Divide the tax-inclusive total by one plus the rate — the reverse of adding tax, useful for receipts, expenses, and bookkeeping.
At a glance
The Short Answer
To remove sales tax from a total, divide the total by (1 + rate). A $106.00 receipt at a 6% rate becomes $106.00 ÷ 1.06 = $100.00 net, which means $6.00 of the total was tax. This is the reverse of the calculator above, which adds tax to a pre-tax price.
Interactive tool
Sales Tax Calculator
Enter your own values, then compare the result with the examples below.
Sales Tax Result
The Reverse Formula
Because the total equals the pre-tax price multiplied by one plus the rate, undoing it is one division:
Net Price = Total ÷ (1 + Rate) and Tax = Total − Net Price
- Total — the tax-inclusive amount on your receipt.
- Rate — the combined sales tax rate as a decimal (7.25% becomes 0.0725).
- Net Price — the pre-tax amount that was actually sold to you.
Worked Examples
| Receipt Total | Rate | Pre-Tax Amount | Tax Portion |
|---|---|---|---|
| $106.00 | 6% | $100.00 | $6.00 |
| $1,287.00 | 7.25% | $1,200.00 | $87.00 |
| $54.13 | 8.25% | $50.00 | $4.13 |
| $109.50 | 9.5% | $100.00 | $9.50 |
When You Need This
The reverse calculation comes up constantly in expense reports (reimbursing the pre-tax amount), bookkeeping (splitting a deposit between revenue and tax collected), and verifying a store charged the right rate. One caution: never just subtract the rate from the total — subtracting 6% of $106 gives $99.64, not $100, because the tax was computed on the smaller pre-tax base. Division is the only correct method. Once you have the net price, you can run it through the calculator above to confirm the tax and total match your receipt.
Frequently Asked Questions
Why can't I just subtract the percentage from the total?
Because the tax was calculated on the pre-tax price, not the total. Subtracting 6% of $106 removes $6.36, but the true tax is only $6.00. Always divide by 1.06 instead.
How do I find the tax rate from a receipt?
Divide the tax amount by the pre-tax subtotal. A receipt showing a $100.00 subtotal and $7.25 tax implies a 7.25% rate.
Does this work for VAT-inclusive prices too?
The same division formula works for VAT: divide the gross by 1 plus the VAT rate. For example, a €120 price at 20% VAT strips to €100 net.
What if part of my receipt was tax-exempt?
Separate the taxable and exempt items first. Apply the reverse formula only to the taxable portion, since exempt items contributed nothing to the tax line.