Reverse Calculate the Price Without 8.25% Sales Tax Rate Out of US $22.04 (USD, US Dollar) Price With Tax Included. Find the Price Before Tax and the Amount of the Deducted Sales Tax. Answer, Formula and Explanation
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 =
22.04 ÷ (1 + 8.25%) =
22.04 ÷ (1 + 8.25/100) =
22.04 ÷ (1 + 8.25 ÷ 100) =
22.04 ÷ (1 + 0.0825) =
22.04 ÷ 1.0825 ≈
20.360277136259 ≈
20.36
(Rounded off to a maximum of 2 decimals)
3. Calculate the 'Amount of the Sales Tax':
Formula:
Amount of Sales Tax =
Price with Sales Tax - Price without Sales Tax
Calculation: Amount of Sales Tax =
22.04 - 20.360277136259 =
1.679722863741 ≈
1.68
(Rounded off to a maximum of 2 decimals)
The final answer:
(scroll down)
Price without Sales Tax ≈ US $20.36 (USD, US Dollars)
Amount of Sales Tax ≈ US $1.68 (USD, US Dollars)
Signs: % percent, ÷ divide, × multiply, = equal, / fraction bar, ≈ approximately equal.
Writing numbers: comma ',' as thousands separator; point '.' as a decimal mark.
More operations of this kind:
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 %)
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| All 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.