How to Calculate Net Sale Price Before Retail Tax

How to Calculate Net Sale Price Before Retail Tax
A few quick calculations are all that's needed to calculate pre-tax prices.

Step 1

Look up the sales tax rate for your area by contacting your state department of revenue and local department of revenue.

Step 2

Divide the total sales tax rate by 100 to convert it from a percentage to a decimal. For example, if the total sales tax equals 5.6 percent, you would divide 5.6 by 100 to get 0.056.

Step 3

Add 1 to the percentage. Continuing the example, you would add 1 to 0.056 to get 1.056.

Step 4

Divide the total price by the result from above to calculate the net sale price before retail tax. Finishing the example, if your total cost was $126.72, you would divide 126.72 by 1.056 to find that the net sale price before retail tax would be $120.