Reverse Calculate the Price Without 7.25% Sales Tax Rate Out of US $22.19 (USD, US Dollar) Price With Tax Included. Find the Price Before Tax and the Amount of the Deducted Sales Tax. Answer, Formula and Explanation

Reverse Calculate the Price Without 7.25% Sales Tax Rate Out of US $22.19 (USD, US Dollar) Price With Tax Included. Detailed answer:

1. The relationship between the 'Price with Sales Tax' and the 'Price without Sales Tax':

Formula:

Amount of Sales Tax =

Sales Tax Rate × Price without Sales Tax


Substitute for the 'Amount of Sales Tax' into the formula below.

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. Express the 'Price without Sales Tax' by the 'Price with Sales Tax':

Formula:

Price with Sales Tax =

Price without Sales Tax × (1 + Sales Tax Rate)

⇒

Price without Sales Tax =

Price with Sales Tax ÷ (1 + Sales Tax Rate)


3. Calculate the 'Price without Sales Tax':

Calculation:

Price without Sales Tax =

22.19 ÷ (1 + 7.25%) =

22.19 ÷ (1 + 7.25/100) =

22.19 ÷ (1 + 7.25 ÷ 100) =

22.19 ÷ (1 + 0.0725) =

22.19 ÷ 1.0725 ≈

20.689976689977 ≈

(Rounded off to a maximum of 2 decimals)
20.69


4. 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 =

22.19 - 20.689976689977 =

1.500023310023 ≈

(Rounded off to a maximum of 2 decimals)
1.5

Price without Sales Tax ≈ US $20.69 (USD, US Dollars)
Amount of Sales Tax ≈ US $1.5 (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 Reverse Calculating the Price Without Sales Tax:

» Reverse Calculate 7.25% Sales Tax out of the Final Price of US $21.19 (USD, US Dollars)

» Reverse Calculate 7.25% Sales Tax out of the Final Price of US $23.19 (USD, US Dollars)

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

Reverse Calculate 7.25% Sales Tax Rate out of the Final Price (with Tax Included) of US $22.19 (USD, US Dollars) Dec 05 19:56 UTC (GMT)
Reverse Calculate 7.8% Sales Tax Rate out of the Final Price (with Tax Included) of US $103.66 (USD, US Dollars) Dec 05 19:55 UTC (GMT)
Reverse Calculate 7% Sales Tax Rate out of the Final Price (with Tax Included) of US $139.95 (USD, US Dollars) Dec 05 19:55 UTC (GMT)
Reverse Calculate 10% Sales Tax Rate out of the Final Price (with Tax Included) of US $193.99 (USD, US Dollars) Dec 05 19:54 UTC (GMT)
Reverse Calculate 6% Sales Tax Rate out of the Final Price (with Tax Included) of US $1,000 (USD, US Dollars) Dec 05 19:53 UTC (GMT)
Reverse Calculate 6.25% Sales Tax Rate out of the Final Price (with Tax Included) of US $1,355 (USD, US Dollars) Dec 05 19:53 UTC (GMT)
Reverse Calculate 6% Sales Tax Rate out of the Final Price (with Tax Included) of US $227.1 (USD, US Dollars) Dec 05 19:51 UTC (GMT)
Reverse Calculate 8.75% Sales Tax Rate out of the Final Price (with Tax Included) of US $238.3 (USD, US Dollars) Dec 05 19:51 UTC (GMT)
Reverse Calculate 20% Sales Tax Rate out of the Final Price (with Tax Included) of US $341 (USD, US Dollars) Dec 05 19:49 UTC (GMT)
Reverse Calculate 7% Sales Tax Rate out of the Final Price (with Tax Included) of US $0.17 (USD, US Dollars) Dec 05 19:48 UTC (GMT)
Reverse Calculate 8.75% Sales Tax Rate out of the Final Price (with Tax Included) of US $48.99 (USD, US Dollars) Dec 05 19:48 UTC (GMT)
Reverse Calculate 7.95% Sales Tax Rate out of the Final Price (with Tax Included) of US $192 (USD, US Dollars) Dec 05 19:48 UTC (GMT)
Reverse Calculate 7% Sales Tax Rate out of the Final Price (with Tax Included) of US $692.86 (USD, US Dollars) Dec 05 19:47 UTC (GMT)
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.

» 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)