Advertisement

Reverse tax calculator

Enter a tax-inclusive price and the tax rate to split out the pre-tax price and the tax amount.

Inputs

Results update live as you type.

Pre-tax price
-

Enter values to calculate.

Tax amount
-
Tax share
-
Formulas: pre-tax = inclusive / (1 + rate/100). Tax = inclusive - pre-tax. Never just subtract the rate percent.
Advertisement

Why you cannot just subtract the percent

Removing 10% tax from $110 is not $110 - $11 = $99. The tax was 10% of the pre-tax price, so you divide by 1.10 instead: $110 / 1.10 = $100 pre-tax, $10 tax. Subtracting the percent from the gross always understates the net.

When reverse tax matters

Use it to back out VAT or sales tax from shelf prices when quoting B2B, to reconcile receipts against accounting software, and to check that a supplier invoice applied the right rate.

Reverse Tax Calc FAQs

How do you remove tax from a price?
Divide the tax-inclusive price by 1 plus the rate as a decimal. At 10% tax: $110 / 1.10 = $100 pre-tax. The tax is the $10 difference.
What is the reverse tax formula?
Pre-tax price = inclusive price / (1 + tax rate/100). Tax amount = inclusive price - pre-tax price.
Why is the tax not 10% of $110?
Because the 10% was charged on the pre-tax $100, not on the $110 total. Tax as a share of the gross is always a little lower than the headline rate: here 9.09%.
Can I use this for VAT?
Yes. VAT, GST and sales tax all work the same way here: enter the gross amount and the rate to split out the net and the tax.
Is my data uploaded anywhere?
No. Every calculation happens in your browser with JavaScript. Nothing you enter leaves your device.
Advertisement