Let's say the price without tax of the car is "x", then you add 5% of "x" and it becomes $26,708.
now, if we take "x" to be the 100% of the price, and then adding a 5% of "x" will simply give us a 100 + 5 = 105%, and that's what 26,708 is, thus, 26,708 is the 105%, and if "x" is the 100%, what is "x" anyway?