How to remove tax from a tax-inclusive price
A tax rate normally applies to the before-tax amount. To separate tax from an inclusive total, divide by one plus the rate rather than applying the percentage directly to the total.
Sales tax / VAT / GST →Identify the tax base
If the before-tax price is B and the decimal tax rate is r, the inclusive price is B × (1 + r). Reversing that relationship gives the base as inclusive price divided by (1 + r). Tax is then the difference between total and base. This single-rate model does not automatically separate a shopping basket containing items taxed at several different rates.
Check an illustrative twenty-percent case
For an inclusive total of 120 and an assumed 20% rate, the base is 120/1.20 = 100 and tax is 20. Calculating 120 × 20% instead gives 24 because it applies the rate to an amount that already contains tax. The 20% figure is an educational input, not a claim about the current treatment of a particular product or jurisdiction.
Read the receipt before choosing the mode
Select the tax-included option when the amount already contains the tax, avoiding a second addition. Countries, regions and products can have different rates, exemptions and invoicing rules; the calculator does not determine eligibility. Line-by-line rounding can also differ slightly from applying one rate to the full total. Refunds and adjustments may need separate handling under the applicable rules.
Try the calculators
- Sales tax / VAT / GST
Add tax or extract it from an inclusive price.
- Discount calculator
Find the sale price and how much you save.
- Percentage calculator
Find a percentage of any number.