Reverse Calculate Price Without 5% Sales Tax Rate Out of USD 9.88 Dollars Price With Tax Included, Find Price Before Tax

Sales tax rate: 5%;
Price with sales tax: 9.88 dollars;
Price without sales tax ≈ 9.41 dollars;
Amount of sales tax ≈ 0.47 dollars;
Detailed calculations below:

Detailed answer:

Amount of sales tax =


Sales tax rate × Price without sales tax;


Price with sales tax =


Price without sales tax + Amount of sales tax =


Price without sales tax + Sales tax rate × Price without sales tax =


Price without sales tax × (1 + Sales tax rate);


Price without sales tax =


Price with sales tax ÷ (1 + Sales tax rate) =


9.88 ÷ (1 + 5%) =


9.88 ÷ (1 + 5/100) =


9.88 ÷ (1 + 0.05) =


9.88 ÷ 1.05 ≈


9.409523809524 ≈


9.41;


Amount of sales tax =


Price without sales tax - Price without sales tax =


9.88 - 9.409523809524 =


0.470476190476 ≈


0.47;

<< Reverse calculate 5% sales tax out of the final price of 8.88 dollars <<


>> Reverse calculate 5% sales tax out of the final price of 10.88 dollars >>

Signs: % percent, ÷ divide, × multiply, ≈ approximately equal;

Writing numbers: point '.' as a decimal mark;

Reverse calculate the sales tax, calculate the amount of contained tax

Price without the sales tax = Price with the sales tax ÷ (1 + Sales tax rate%)

Latest sales taxes reverse calculated out of final prices

Sales Tax Amount and Sales Tax Rate

What is the "Sales Tax"? What is the "Sales Tax Rate"?

  • The Sales Tax is a consumption tax imposed by states, counties or/and cities and municipalities in the United States on the sale of goods and services.
  • The sales tax is paid by the final consumer to the retailer at the point of sale as a percentage of the selling price of the sold good or service.
  • This percentage, called the Sales Tax Rate, varies from state to state, in Texas for example there is a general sales tax rate of around 6.25%.

Formulas: How to reverse calculate the Sales Tax and the Selling Price Without the Sales Tax out of the Final Sales Tax Charged Price?

  • "Sales tax amount" = "Sales tax rate%" × "Price without sales tax"
  • "Sales tax charged price"
    • = "Price without sales tax" + "Sales tax amount"
    • = "Price without sales tax" + "Sales tax rate%" × "Price without sales tax"
    • = "Price without sales tax" × (1 + "Sales tax rate%")
  • In conclusion:
  • "Price without sales tax" = "Sales tax charged price" ÷ (1 + "Sales tax rate%")

Example of reverse calculating the Sales Tax and the List Selling Price out of the Final Price with the tax

  • Let's say that a person who lives in an area where the sales tax rate is 5% bought some cider and had to pay a total of a $525 dollar bill that included the sales tax.
  • "Price without sales tax"
    • = "Sales tax charged price" ÷ (1 + "Sales tax rate%")
    • = $525 ÷ (1 + 5%)
    • = $525 ÷ (1 + 5/100)
    • = $525 ÷ (1 + 0.05)
    • = $525 ÷ 1.05
    • = $500 dollars.
  • That person had to pay a "Sales tax amount"
    • = "Sales tax charged price" - "Price without sales tax"
    • = $525 - $500
    • = $25 dollars.

Read the full article: How to Reverse Calculate Sales Tax Out of The Final Price (With Tax, After Tax)


Sales Tax: What is it and How to Add it (Charge it) to the Listed Selling Prices (Before Tax)