How to Calculate Sales Tax Backwards from Total

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What are a Sales Tax and its different forms?

You need to know what sales tax is before you begin to discern how to figure sales tax backward. The tax returned to the government upon the sale of some products or services is called a sales tax.

Definition

Have you ever wondered how much you paid for something before the sales tax was applied, or if the sales tax on your receipt was accurate? With our “Reverse Sales Tax Calculator,” you can now find out. Reverse sales tax is something you calculate not something that you are paying. Two inputs are required for our “Reverse Sales Tax Calculator.” You only need to enter the amount of sales tax you paid and the total amount on your receipt.

Figure out how to Calculate Sales Tax Backwards from Total

Why is it Beneficial to Use a “Reverse Sales Tax Calculator”?

If you itemize your deductions and claim overpayment of local and out-of-state sales taxes on your taxes, a “Reverse Sales Tax Calculator” can help. The essential thing to keep in mind when it comes to claiming sales tax and tax forms is to keep all receipts for any purchases you wish to claim.

On things sold in stores, most states and municipal governments collect sales tax. For some people, knowing how much sales tax they paid is critical for filing accurate tax returns and seeking a refund for sales tax overpayments. This is especially useful if you need to report your out-of-state purchases and the taxes you paid on them to your present state of residence.

Free Reverse Sales Tax Calculator

Calculate the sales tax backwards from total

When reviewing your business receipts, for example, you might want to know how much is genuine income and how much is sales tax.
To compute sales tax backward from the total, use the formula below.
We’ll assume you already know the sales tax percentage in this computation.
Add the sales tax percentage to your sales revenues and multiply by 1.
The total sales-tax dollars are calculated by multiplying the result by the tax rate.
To calculate your non-tax sales revenue, subtract that amount from your receipts.

How to reverse calculate sales tax – How to figure sales tax backwards

Reverse Sales Tax Formula:

Selling Price = Final Price, 1 plus Sales Tax

For Instance, assume your sales revenues totaled $1200, and your sales tax rate is 12%. 
sales tax backwards example
Sales tax is $ 129

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