Sales Tax & VAT Calculator

Add tax to a price or pull it out of a tax-inclusive total — at any sales tax, VAT or GST rate.

Quick answer

A sales tax and VAT calculator adds tax to a price or removes it from a tax-inclusive total at any rate. Adding 8.25% to $100 gives $108.25. To remove 20% VAT from £120, divide by 1.20 to get £100; simply subtracting 20% gives the wrong answer.

$
%
Total with tax
$108.25
Tax amount
$8.25
Price before tax
$100.00
Adding 8.25% tax to $100.00 adds $8.25, for a total of $108.25.

Key takeaways

  • Add tax: multiply by (1 + rate).
  • Remove tax: divide by (1 + rate).
  • VAT, GST and sales tax use the same maths.
VAT — Value-added tax: a consumption tax charged as a percentage of the sale price at each stage of supply.

How the sales tax & vat calculator works

When adding tax, multiply the pre-tax price by the rate. When a price already includes tax (common for VAT in Europe and the UK), divide by 1 + rate to find the pre-tax price — subtracting the percentage directly overstates the tax.

Formula

Add tax: gross = net × (1 + rate) Remove tax: net = gross ÷ (1 + rate), tax = gross − net

Standard formula. Further reading: Investopedia – Value-added tax (VAT)

Worked example

$100 plus 8.25% sales tax = $108.25. A £120 price including 20% UK VAT = 120 ÷ 1.20 = £100 net + £20 VAT.

Change any number above and the plain-English explanation updates instantly with your own figures.

Frequently asked questions

Why not just subtract 20% to remove VAT?

Because VAT is calculated on the net price. £120 − 20% = £96, which is wrong; the correct net is £100.

What is the sales tax rate in the US?

There is no federal sales tax; combined state and local rates range from 0% to about 10%.

What is the VAT rate in the UK and EU?

The UK standard rate is 20%. EU standard rates range from about 17% to 27%.

Does this work for GST?

Yes, GST works the same way. Enter your country's rate.

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Results are estimates for educational purposes and are not financial advice.

Written and reviewed by Muhammad Asif, founder of CalcPane · Formulas verified by automated tests · Updated