Reverse Calculate the Price Without 7% Sales Tax Rate Out of US $397.44 (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% Sales Tax Rate Out of US $397.44 (USD, US Dollar) Price With Tax Included. 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 =

397.44 ÷ (1 + 7%) =

397.44 ÷ (1 + 7/100) =

397.44 ÷ (1 + 7 ÷ 100) =

397.44 ÷ (1 + 0.07) =

397.44 ÷ 1.07 ≈

371.439252336449 ≈

(Rounded off to a maximum of 2 decimals)
371.44


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 =

397.44 - 371.439252336449 =

26.000747663551 ≈

(Rounded off to a maximum of 2 decimals)
26

Price without Sales Tax ≈ US $371.44 (USD, US Dollars)
Amount of Sales Tax ≈ US $26 (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% Sales Tax out of the Final Price of US $396.44 (USD, US Dollars)

» Reverse Calculate 7% Sales Tax out of the Final Price of US $398.44 (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% Sales Tax Rate out of the Final Price (with Tax Included) of US $397.44 (USD, US Dollars) Sep 08 00:12 UTC (GMT)
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Reverse Calculate 8.25% Sales Tax Rate out of the Final Price (with Tax Included) of US $782,738.27 (USD, US Dollars) Sep 08 00:11 UTC (GMT)
Reverse Calculate 10.25% Sales Tax Rate out of the Final Price (with Tax Included) of US $408.98 (USD, US Dollars) Sep 08 00:11 UTC (GMT)
Reverse Calculate 10% Sales Tax Rate out of the Final Price (with Tax Included) of US $630.75 (USD, US Dollars) Sep 08 00:09 UTC (GMT)
Reverse Calculate 5% Sales Tax Rate out of the Final Price (with Tax Included) of US $212.95 (USD, US Dollars) Sep 08 00:09 UTC (GMT)
Reverse Calculate 15% Sales Tax Rate out of the Final Price (with Tax Included) of US $54.45 (USD, US Dollars) Sep 08 00:09 UTC (GMT)
Reverse Calculate 6% Sales Tax Rate out of the Final Price (with Tax Included) of US $6,870.14 (USD, US Dollars) Sep 08 00:08 UTC (GMT)
Reverse Calculate 6% Sales Tax Rate out of the Final Price (with Tax Included) of US $9,003.87 (USD, US Dollars) Sep 08 00:07 UTC (GMT)
Reverse Calculate 8% Sales Tax Rate out of the Final Price (with Tax Included) of US $1,349 (USD, US Dollars) Sep 08 00:06 UTC (GMT)
Reverse Calculate 11% Sales Tax Rate out of the Final Price (with Tax Included) of US $813 (USD, US Dollars) Sep 08 00:04 UTC (GMT)
Reverse Calculate 11% Sales Tax Rate out of the Final Price (with Tax Included) of US $813 (USD, US Dollars) Sep 08 00:04 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)