# Sales Tax Calculator

> Free sales tax calculator. Add sales tax or VAT to a net price, or remove it from a gross price. Shows the net price, tax amount and gross price instantly.

Add sales tax or VAT to a price that excludes tax, or back out the tax from a price that already includes it. Enter the price and the tax rate, pick Add or Remove, and instantly see the net price, the tax amount and the gross price.

*Interactive tool: enter your values at https://toollantern.win/sales-tax-calculator/ and results update instantly in your browser.*

## The two formulas

- **Add tax:** tax = net price × rate ÷ 100, then gross = net + tax.

- **Remove tax:** net = gross ÷ (1 + rate ÷ 100), then tax = gross − net.

Both directions use the same rate. Removing tax is not the same as subtracting the percentage from the gross price: the tax was calculated on the net price, so you divide by 1 plus the rate to undo it.

## Worked example

A headset costs **100 plus 20% VAT**. Tax = 100 × 20 ÷ 100 = **20**, so the gross price is **120**. Seen the other way, a price of **120 including 20% VAT** gives net = 120 ÷ 1.20 = **100** and tax = 120 − 100 = **20**.

## When to add, and when to remove

In the United States, shelf prices usually exclude sales tax, so use **Add tax** to estimate what you pay at the till. In the UK and the EU, advertised prices normally include VAT, so use **Remove tax** to recover the tax-exclusive price for a business expense or an invoice. Marketplaces mix both conventions, so check the fine print when a listing looks too cheap or too dear.

## Limitations

Some places charge different rates for different goods, such as groceries versus restaurants, while this calculator uses a single rate. It also ignores rounding to the nearest coin, which shops apply at the till, so expect the odd cent of difference on a real receipt.

## Frequently asked questions
### How do I remove VAT from a price?

Divide the gross price by 1 plus the rate as a decimal. A price of 120 with 20% VAT becomes 120 ÷ 1.20 = 100, so the VAT included is 20.

### How do I add sales tax to a price?

Multiply the net price by the rate over 100 and add the result. With 8.25% sales tax, a price of 100 adds 8.25, for a total of 108.25.

### What tax rate should I use?

Use the combined rate that applies where you buy. US states range from 0% to about 10%, the UK standard VAT rate is 20%, and EU member states charge between 17% and 27%. Check your receipt or the local tax authority when in doubt.

### Is removing 20% VAT the same as taking 20% off?

No. Taking 20% off 120 gives 96, but the correct tax-exclusive price is 120 ÷ 1.20 = 100. Always divide by 1 plus the rate, never subtract the percentage.

### How do shops round sales tax?

Most round each line or the final total to the nearest cent or smallest coin. A cent or two of difference between this calculator and a receipt is normal.

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Interactive version: https://toollantern.win/sales-tax-calculator/