How to remove sales tax from an amount
To find the pre-tax price, divide the total by (1 + tax rate). A common mistake is to subtract 13% from the total, which gives a result that's too low.
Pre-tax amount = total ÷ (1 + rate)
Ontario: total ÷ 1.13
Quebec: total ÷ 1.14975
Ontario: total ÷ 1.13
Quebec: total ÷ 1.14975
Why not just subtract the percentage? Because the tax was calculated on the pre-tax price, not on the total. Subtracting 13% from $113.00 gives $98.31, while the actual pre-tax price is $100.00.
Divisors by province
| Province | Rate | Divide by |
|---|---|---|
| Quebec | 14.975% | 1.14975 |
| Ontario | 13% | 1.13 |
| British Columbia | 12% | 1.12 |
| Alberta | 5% | 1.05 |
| Manitoba | 12% | 1.12 |
| Saskatchewan | 11% | 1.11 |
| Nova Scotia | 14% | 1.14 |
| New Brunswick | 15% | 1.15 |
| Newfoundland and Labrador | 15% | 1.15 |
| Prince Edward Island | 15% | 1.15 |
| Yukon | 5% | 1.05 |
| Northwest Territories | 5% | 1.05 |
| Nunavut | 5% | 1.05 |
Examples in Ontario
| Tax included | Before tax | Tax |
|---|---|---|
| $10.00 | $8.85 | $1.15 |
| $20.00 | $17.70 | $2.30 |
| $50.00 | $44.25 | $5.75 |
| $100.00 | $88.50 | $11.51 |
| $200.00 | $176.99 | $23.01 |
| $500.00 | $442.48 | $57.52 |
| $1,000.00 | $884.96 | $115.04 |
When to use a reverse tax calculation
A reverse calculation is useful for filling out an expense report, entering an invoice in your bookkeeping, checking the tax on a receipt, or setting a tax-included selling price that lands on a round number, such as $20 all-in.