If you sold an item for 20.00 and included sales tax and your sales tax rate is 7.3 what was the item price before sales tax?

Answer 1

The easiest way to understand the answer is to turn it around. If you wanted to calculate the item price plus tax, you would multiply the item price by 1.073. So, to back up to the item price from the item price plus tax, divide the item price plus tax by 1.073. $20.00 / 1.073 = item price before sales tax.