Reverse Sales Tax Calculator Ontario
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Reviewed by Calculator Editorial Team
Determine the original price before tax in Ontario using our reverse sales tax calculator. Simply enter the final price and the applicable tax rate to find the pre-tax amount.
How to Use This Calculator
Using our reverse sales tax calculator is straightforward:
- Enter the final price including tax in the "Final Price" field.
- Select the appropriate tax rate from the dropdown menu.
- Click the "Calculate" button to determine the original price before tax.
- Review the result and use the "Reset" button to clear the form if needed.
The calculator will display the original price before tax and show a breakdown of how the tax was applied to reach the final price.
Formula Explained
The reverse sales tax calculation is based on the following formula:
Original Price = Final Price / (1 + Tax Rate)
Where:
- Final Price is the total amount including tax
- Tax Rate is the percentage of tax applied (expressed as a decimal)
For example, if the final price is $100 and the tax rate is 13% (0.13), the original price before tax would be $100 / (1 + 0.13) = $88.49.
Worked Examples
Example 1: 13% Ontario Sales Tax
If an item costs $120 after tax with a 13% Ontario sales tax rate:
Original Price = $120 / (1 + 0.13) = $120 / 1.13 ≈ $106.11
The original price before tax was approximately $106.11.
Example 2: 8% Ontario Sales Tax
If an item costs $50 after tax with an 8% Ontario sales tax rate:
Original Price = $50 / (1 + 0.08) = $50 / 1.08 ≈ $46.30
The original price before tax was approximately $46.30.
Common Ontario Sales Tax Rates
Ontario has several sales tax rates depending on the type of product or service:
| Tax Type | Rate |
|---|---|
| General Sales Tax (GST) | 5% |
| Provincial Sales Tax (PST) | 8% |
| Harmonized Sales Tax (HST) | 13% |
The HST rate of 13% is the most commonly applied rate in Ontario, combining the federal GST and provincial PST.
Frequently Asked Questions
What is a reverse sales tax calculator?
A reverse sales tax calculator determines the original price before tax was added. You enter the final price including tax and the tax rate to find the pre-tax amount.
How do I use the Ontario reverse sales tax calculator?
Enter the final price including tax, select the appropriate Ontario tax rate (5%, 8%, or 13%), and click "Calculate" to find the original price before tax.
What are the common Ontario sales tax rates?
Ontario has three main sales tax rates: 5% GST, 8% PST, and 13% HST (combined GST and PST). The HST rate of 13% is most commonly applied.
Is the reverse sales tax calculation the same as finding the pre-tax price?
Yes, the reverse sales tax calculation determines the original price before tax was added. It's essentially solving for the pre-tax amount in the equation: Final Price = Original Price × (1 + Tax Rate).
Can I use this calculator for other provinces?
This calculator is specifically designed for Ontario sales tax rates. For other provinces, you would need to use a calculator with the appropriate tax rates for that jurisdiction.