Reverse sales tax is not something you pay, its something you calculate.

For instance, when you’re going over your business receipts, you may want to know how much is actual income and how much is sales tax.

**Formula to calculate sales tax backwards from total.**

In this formula, we assume that you already know the sales tax percentage.

- Divide your sales receipts by 1 plus the sales tax percentage.
- Multiply the result by the tax rate, and you get the total sales-tax dollars.
- Subtract that from the receipts to get your non-tax sales revenue.

**Example:**

Suppose your sales receipts amounted to $ 1200 and the sales tax rate is 12%. Calculate the sales tax backwards from total.

Therefore, your sales tax is $ 129.