Excel Pro Tip: Reverse Sales Tax Calculator in Excel
A much better practice is to place the tax rate in its own cell. Hardcoding the tax rate directly into the formula (like 0.08) works, but it's not very flexible. We want to divide the Total Amount (cell B2) by (1 + the tax rate). In cell C2, you'll enter the formula we just worked out. Once you have the original price, finding the tax amount is as simple as subtracting it from the total. Example Calculations with Various Tax Rates Besides