Reverse Calculate the Price Without 8.25% Sales Tax Rate Out of US $318,756 (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 8.25% Sales Tax Rate Out of US $318,756 (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 =

318,756 ÷ (1 + 8.25%) =

318,756 ÷ (1 + 8.25/100) =

318,756 ÷ (1 + 8.25 ÷ 100) =

318,756 ÷ (1 + 0.0825) =

318,756 ÷ 1.0825 ≈

294,462.817551963048 ≈

(Rounded off to a maximum of 2 decimals)
294,462.82


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 =

318,756 - 294,462.817551963048 =

24,293.182448036952 ≈

(Rounded off to a maximum of 2 decimals)
24,293.18

Price without Sales Tax ≈ US $294,462.82 (USD, US Dollars)
Amount of Sales Tax ≈ US $24,293.18 (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 8.25% Sales Tax out of the Final Price of US $318,755 (USD, US Dollars)

» Reverse Calculate 8.25% Sales Tax out of the Final Price of US $318,757 (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 8.25% Sales Tax Rate out of the Final Price (with Tax Included) of US $318,756 (USD, US Dollars) Dec 05 19:31 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)