Reverse Calculate Price Without 7.25% Sales Tax Rate Out of USD 163 (Dollars) Price With Tax Included. Find Price Before Tax and the Amount of the Sales Tax
Detailed answer:
1. Rewrite 'Price with sales tax'.
Replace the 'Amount of sales tax' in the ecuation of 'Price with sales tax':
Formula:
Amount of sales tax =
Sales tax rate × Price without sales tax;
Formula:
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)
2. Calculate the 'Price without sales tax':
Formula:
Price with sales tax =
Price without sales tax × (1 + Sales tax rate)
=>
Formula:
Price without sales tax =
Price with sales tax ÷ (1 + Sales tax rate)
Calculation:
Price without sales tax =
163 ÷ (1 + 7.25%) =
163 ÷ (1 + 7.25/100) =
163 ÷ (1 + 7.25 ÷ 100) =
163 ÷ (1 + 0.0725) =
163 ÷ 1.0725 ≈
151.981351981352 ≈
151.98 (Rounded to a maximum of 2 decimals)
3. Calculate the 'Amount of sales tax':
Formula:
Amount of sales tax =
Price with sales tax - Price without sales tax
Calculation:
Amount of sales tax =
163 - 151.981351981352 =
11.018648018648 ≈
11.02 (Rounded to a maximum of 2 decimals)
Answer: (scroll down)
Price without sales tax ≈ $151.98 dollars; Amount of sales tax ≈ $11.02 dollars;
Signs: % percent, ÷ divide, × multiply, = equal, / fraction bar, ≈ approximately equal;
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?
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.