Adding Sales Tax
When shopping, retail items display net prices. To find the total price at checkout:
Example: A $20 book with a 6% tax rate will end up costing $20 × 1.06 = $21.20.
Removing Sales Tax (Reverse)
If you have a receipt with the total amount paid, you can isolate the original price before taxes were added:
Example: If you paid a total of $107 with a 7% tax rate, the base price is $107 / 1.07 = $100.00, meaning you paid $7.00 in sales tax.