1. What is the Reverse Sales Tax Calculator?

The Reverse Sales Tax Calculator helps determine the original price before tax was added, using Connecticut's 2025 sales tax rate of 6.35%. This is useful for accounting, expense tracking, and financial planning.

2. How Does the Calculator Work?

The calculator uses the reverse sales tax formula:

Where:

• Total Amount — The final price including tax (USD)
• Tax Rate — Connecticut's sales tax rate (0.0635 for 6.35%)

Explanation: The formula works backward from the total amount to find the original price before tax was added.

3. Importance of Reverse Tax Calculation

Details: Reverse tax calculations are essential for businesses to determine actual product costs, for expense reports, and when comparing prices across different tax jurisdictions.

4. Using the Calculator

Tips: Enter the total amount paid (including tax) in USD and the tax rate as a decimal (0.0635 for 6.35%). The calculator will show both the pre-tax amount and the tax amount.

5. Frequently Asked Questions (FAQ)

Q1: Why use 0.0635 as the tax rate?
A: This represents Connecticut's 6.35% statewide sales tax rate for 2025. Some localities may have additional taxes.

Q2: Can I use this for other tax rates?
A: Yes, you can adjust the tax rate field for any decimal tax rate (e.g., 0.08 for 8%).

Q3: Is this calculator accurate for all purchases?
A: It works for most standard taxable items. Some items may have different tax rates or exemptions.

Q4: How precise are the calculations?
A: Results are rounded to 2 decimal places (cents) for currency formatting.

Q5: Can I use this for business accounting?
A: While helpful for estimates, consult a tax professional for official business accounting.