How do You Back Out Sales Tax?

Answer

In order to 'back out' sales tax, you'll need to know the tax rate of your state and city. For example, total tax in my city is 7.5%. If I purchase an item and the receipt reads $537.50, then I divide this amount by 1.075 and find the item cost exactly $500 before tax was added.
Formula: Total cost / (1.00 + percentage as a decimal) = Pre-tax price
Q&A Related to "How do You Back Out Sales Tax?"
1. Determine the sales tax rate for the item you are purchasing. Is the sales tax 6% 15% 2. Enter the total amount due on your calculator. Assume the total is $13.65. Enter that amount
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The business seller's responsibility is to pay off all of the liabilities at closing.
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1. Calculate your gross receipts. If the taxes are already included in your gross receipts, you will need to deduct them for your report; otherwise, you will be paying taxes on the
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1. Look up the HST for your province and the type of item you are purchasing. You can find current HST rates on the provincial governments' websites. If you are in a province that
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1 Additional Answer
Here is an example of how to back out sales tax. If the price paid, including tax, is $10.53, and the tax rate is 8%, divide $10.53 by 1.08. This tells you the price before tax is $9.75.
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