How to Calculate Sales Tax Backwards from Total
When you have a receipt total that includes tax, the reverse formula extracts the original price: Pre-tax price = Total / (1 + Tax Rate). For example, if your receipt shows $107.00 and the tax rate is 7%, the pre-tax price is $107.00 / 1.07 = $100.00, and the tax portion is $7.00. This is essential for expense reporting, bookkeeping, and reconciling receipts where the tax is not listed as a separate line item.