Reverse Calculate Sales Tax Ontario

When you see a final price in Ontario that includes sales tax, you may need to determine the original price before tax. This calculator helps you reverse calculate the sales tax in Ontario to find the pre-tax amount.

How to Use This Calculator

To reverse calculate the sales tax in Ontario:

Enter the final price including tax in the "Final Price" field.
Select the appropriate sales tax rate from the dropdown menu.
Click the "Calculate" button to see the original price before tax.

The calculator will display the pre-tax amount and show how much of the final price is tax.

Formula Explained

The formula to reverse calculate the sales tax in Ontario is:

Original Price = Final Price / (1 + Tax Rate)

Where:

Original Price is the amount before tax
Final Price is the amount including tax
Tax Rate is the sales tax percentage (e.g., 0.13 for 13%)

For example, if the final price is $100 and the tax rate is 13%, the original price before tax would be $100 / (1 + 0.13) = $88.49.

Worked Example

Let's say you see a final price of $120 in an Ontario store. You want to find out what the original price was before the 13% sales tax was added.

Using the formula:

Original Price = $120 / (1 + 0.13) = $120 / 1.13 ≈ $106.19

So, the original price before tax was approximately $106.19. The $120 final price includes $13.81 in sales tax.

Frequently Asked Questions

What is the current sales tax rate in Ontario?

As of 2023, the standard sales tax rate in Ontario is 13%. Some items may be exempt from sales tax.

Can I use this calculator for other provinces?

This calculator is specifically designed for Ontario sales tax rates. Different provinces have different tax rates.

Is the sales tax always 13% in Ontario?

Yes, the standard sales tax rate in Ontario is 13%. Some items may have different tax rates or be exempt.