Reverse Calculate the Price Without 5% Sales Tax Rate Out of US $425 (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 5% Sales Tax Rate Out of US $425 (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 =

425 ÷ (1 + 5%) =

425 ÷ (1 + 5/100) =

425 ÷ (1 + 5 ÷ 100) =

425 ÷ (1 + 0.05) =

425 ÷ 1.05 ≈

404.761904761905 ≈

(Rounded off to a maximum of 2 decimals)
404.76


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 =

425 - 404.761904761905 =

20.238095238095 ≈

(Rounded off to a maximum of 2 decimals)
20.24

Price without Sales Tax ≈ US $404.76 (USD, US Dollars)
Amount of Sales Tax ≈ US $20.24 (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 5% Sales Tax out of the Final Price of US $424 (USD, US Dollars)

» Reverse Calculate 5% Sales Tax out of the Final Price of US $426 (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 5% Sales Tax Rate out of the Final Price (with Tax Included) of US $425 (USD, US Dollars) Sep 07 23:15 UTC (GMT)
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Reverse Calculate 8.85% Sales Tax Rate out of the Final Price (with Tax Included) of US $3,170.99 (USD, US Dollars) Sep 07 23:11 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)