Canada Reverse GST Calculator
The Canada Reverse GST Calculator allows you to calculate the pre-tax amount from a total price that includes the Goods and Services Tax (GST). This tool is particularly useful when you need to find out the original price before GST was applied.
Reverse GST Calculator
The reverse GST calculation helps you break down a total amount (including tax) to see how much of it is tax, and how much is the original price.
How to Calculate Reverse GST
To reverse the GST and find the pre-tax price, you can use the following formula:
$$ \text{Pre-tax Price} = \frac{\text{Total Price}}{1 + \text{GST Rate}}$$Where:
- Pre-tax Price is the amount before GST.
- Total Price is the amount you paid, including GST.
- GST Rate is the applicable GST percentage (e.g., 5%).
Example Calculation
Let’s say you paid $105 in a province with a 5% GST rate. To calculate the pre-tax price:
Use the formula:
$$ \text{Pre-tax Price} = \frac{105}{1 + 0.05} $$ $$ \text{Pre-tax Price} = \text {100} $$Thus, the original price before GST was applied is $100.
Steps to Use the Reverse GST Calculator:
- Select the province: Choose the province where the purchase was made to ensure the correct GST rate is applied.
- Enter the total price: Enter the amount into “Price including GST” at the bottom. This is your final amount, including GST.
- Get your price!’: Our calculator will instantly show you the pre-tax amount and the exact GST charged.
FAQs
1. What is the GST rate in Canada?
The federal GST rate is 5%, applied across most provinces. However, in provinces that use HST (Harmonized Sales Tax), GST is combined with PST (Provincial Sales Tax).
2. How do I calculate the GST portion?
To calculate the GST portion, simply subtract the pre-tax price from the total price:
3. Can I use this calculator for both GST and HST?
This specific calculator is designed for GST-only provinces. You can use the Canada Reverse HST Calculator instead if you are in an HST province.