Reverse Sales Tax Calculator

$1.25 + 12% tax= $1.12 Original Price (before tax)

See exactly how we calculated the pre-tax price from your tax-inclusive amount. Our step-by-step breakdown shows the precise mathematics behind removing sales tax from a total price.

Quick Reference

Final Price (with tax)$1.25

Tax Rate (%)12%

Tax Amount$0.13

Original Price (before tax)$1.12

Calculation Steps

Final price with tax: $1.25

Convert tax rate to decimal: 12% ÷ 100 = 0.120

Calculate divisor (1 + tax rate): 1 + 0.120 = 1.120

Divide final price by divisor: $1.25 ÷ 1.120 = $1.12

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How It Works

To find the original price before tax, divide the tax-inclusive amount by (1 + tax rate as decimal). This calculator handles the math for you, showing each step of the process.

The Formula

Original Price = Final Price ÷ (1 + Tax Rate%/100)

Example Calculation

For a final price of $1.25 with 12% tax rate, divide $1.25 by (1 + 12/100) to get the original price of $1.12. The tax amount is $0.13.