A worked example
A $250 purchase with a combined 8.25% sales tax (a common rate in parts of Texas) comes to $270.63 total — $20.63 in tax. Working backward, if a receipt shows $270.63 as the total and you know the rate was 8.25%, dividing by 1.0825 correctly recovers the original $250 price — simply subtracting 8.25% of $270.63 would give the wrong answer.