Reverse Calculate the Price Without 8.75% Sales Tax Rate Out of US $238.3 (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 8.75% Sales Tax Rate Out of US $238.3 (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 =

238.3 ÷ (1 + 8.75%) =

238.3 ÷ (1 + 8.75/100) =

238.3 ÷ (1 + 8.75 ÷ 100) =

238.3 ÷ (1 + 0.0875) =

238.3 ÷ 1.0875 ≈

219.126436781609 ≈

(Rounded off to a maximum of 2 decimals)
219.13


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 =

238.3 - 219.126436781609 =

19.173563218391 ≈

(Rounded off to a maximum of 2 decimals)
19.17

Price without Sales Tax ≈ US $219.13 (USD, US Dollars)
Amount of Sales Tax ≈ US $19.17 (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 8.75% Sales Tax out of the Final Price of US $237.3 (USD, US Dollars)

» Reverse Calculate 8.75% Sales Tax out of the Final Price of US $239.3 (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 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)
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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.

» 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)