what would be the formula for seperating the tax from an amount?

N

Nuts in New Mexico

If I hava dollar amount of 106. how would I seperate the tax and the pretax
amount?
 
C

CarlosAntenna

a1=6% {tax rate}
b1=106 {your dollar amount}
c1=b1/(a1+1) {pre-tax amount}
d1=b1-c1 {tax amount}
 
M

mzehr

Hi,
I am assuming that if you were a total of $106 you want to know what the
base amount was and the tax on the sale. To do that you would need to know
what the tax rate for the jurisdiction was. Assuming that you know that you
would divide $106 by the (1+tax rate) Therefore if the tax rate is 6% you
would divide 106 by 1.06 and get $100 as the base. The difference between
the base and your total is the tax
 
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