Understanding your calculation
Method, example and limitations
How the calculation works
Sales tax applies a percentage to the taxable amount. For a tax-exclusive price, tax = price × rate; the total adds that tax to the original price.
Example to check
A $100 taxable purchase with an 8% rate produces $8 tax and a $108 total. For a tax-inclusive $108 price at that rate, the pre-tax amount is $100.
Before using the result
Real purchases can contain exempt goods, differing local rates or special fee rules. Check whether the input includes tax before extracting or adding it.