Reverse Calculate the Price Without 8.7% Sales Tax Rate Out of US $9.88 (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 8.7% Sales Tax Rate Out of US $9.88 (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 =

9.88 ÷ (1 + 8.7%) =

9.88 ÷ (1 + 8.7/100) =

9.88 ÷ (1 + 8.7 ÷ 100) =

9.88 ÷ (1 + 0.087) =

9.88 ÷ 1.087 ≈

9.089236430543 ≈

(Rounded off to a maximum of 2 decimals)
9.09


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 =

9.88 - 9.089236430543 =

0.790763569457 ≈

(Rounded off to a maximum of 2 decimals)
0.79

Price without Sales Tax ≈ US $9.09 (USD, US Dollars)
Amount of Sales Tax ≈ US $0.79 (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 8.7% Sales Tax out of the Final Price of US $8.88 (USD, US Dollars)

» Reverse Calculate 8.7% Sales Tax out of the Final Price of US $10.88 (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 8.7% Sales Tax Rate out of the Final Price (with Tax Included) of US $9.88 (USD, US Dollars) Apr 30 18:30 UTC (GMT)
Reverse Calculate 10.6% Sales Tax Rate out of the Final Price (with Tax Included) of US $4,966.99 (USD, US Dollars) Apr 30 18:29 UTC (GMT)
Reverse Calculate 7.99% Sales Tax Rate out of the Final Price (with Tax Included) of US $87.99 (USD, US Dollars) Apr 30 18:28 UTC (GMT)
Reverse Calculate 7% Sales Tax Rate out of the Final Price (with Tax Included) of US $34.43 (USD, US Dollars) Apr 30 18:27 UTC (GMT)
Reverse Calculate 9.8% Sales Tax Rate out of the Final Price (with Tax Included) of US $1,393 (USD, US Dollars) Apr 30 18:27 UTC (GMT)
Reverse Calculate 7% Sales Tax Rate out of the Final Price (with Tax Included) of US $34.43 (USD, US Dollars) Apr 30 18:27 UTC (GMT)
Reverse Calculate 7% Sales Tax Rate out of the Final Price (with Tax Included) of US $669.09 (USD, US Dollars) Apr 30 18:26 UTC (GMT)
Reverse Calculate 7% Sales Tax Rate out of the Final Price (with Tax Included) of US $669.09 (USD, US Dollars) Apr 30 18:26 UTC (GMT)
Reverse Calculate 7.25% Sales Tax Rate out of the Final Price (with Tax Included) of US $406 (USD, US Dollars) Apr 30 18:26 UTC (GMT)
Reverse Calculate 1% Sales Tax Rate out of the Final Price (with Tax Included) of US $48.99 (USD, US Dollars) Apr 30 18:26 UTC (GMT)
Reverse Calculate 10.25% Sales Tax Rate out of the Final Price (with Tax Included) of US $1,321.82 (USD, US Dollars) Apr 30 18:24 UTC (GMT)
Reverse Calculate 7% Sales Tax Rate out of the Final Price (with Tax Included) of US $206.49 (USD, US Dollars) Apr 30 18:24 UTC (GMT)
Reverse Calculate 6% Sales Tax Rate out of the Final Price (with Tax Included) of US $83.24 (USD, US Dollars) Apr 30 18:24 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)