How this number is made
When the receipt total includes sales tax, the pre-tax price is the total divided by one plus the rate. The tax is the difference. This is the reverse of the sales-tax page.
- The rate is the combined state and local rate that was actually charged.
- The total is what left your card, including the tax.
Formula
Pre-tax price = total ÷ (1 + rate). Tax = total − pre-tax price.
Worked example
With the figures already in the form, price before tax is $100.00.
Questions
What if some items were exempt?
Then one rate does not fit the receipt. Split the taxable total from the exempt total before you use this.
Is this VAT?
The algebra is the same as stripping a VAT that was included. The VAT page handles a rate that may need to be remitted.