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Works with any currency. Add tax to a net price or remove it from a gross price.
Sales Tax Calculator
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.
-Net price (excludes tax)
-Tax amount
-Gross price (includes tax)
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.
Planning estimate only. Results use the list prices shown and may differ from your actual bill. Terms
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.