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Sales Tax Calculator (Add or Remove Tax)

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Choose whether your amount is before tax or already includes it, enter the tax rate and see the net price, the tax and the total.

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Adding tax to a price

Sales tax, value-added tax (VAT) and goods and services tax (GST) are all percentages added to the price of goods and services. To add tax, multiply the pre-tax price by 1 plus the rate as a decimal. A 100 item with 8.25% tax costs 100 × 1.0825 = 108.25, and the tax portion is 8.25. In the United States, sales tax is added at the till and varies by state, county and city. In most other countries VAT or GST is already included in shelf prices.

Removing tax from a total

If you only know the tax-inclusive total, you cannot just subtract the rate from it. A common mistake is to take 8.25% of 108.25 and subtract it, which gives the wrong net price. The correct method is to divide by 1 plus the rate: 108.25 ÷ 1.0825 = 100. The tax is the difference, 8.25. Choose "Remove tax from a total" to do this correctly. It is useful for expense reports, invoices and business purchases where you need to separate the net amount from the VAT.

Working in cents

Prices and tax are rounded to the nearest cent in real transactions. This tool converts the amount to whole cents, applies the rate and rounds once, so the net price plus tax always adds up exactly to the total shown. Retailers sometimes round per item and sometimes per receipt, which can create a one-cent difference from your till receipt.

Common questions it helps answer

  • How much will this cost after tax at the checkout?
  • What was the price before VAT on this invoice?
  • How much tax did I pay on this purchase for my records?
  • What price should I charge so that the total with tax is a round number?

Limits

You must supply the rate yourself, because rates differ by place and product category (food, clothing and digital services are often taxed differently). The tool does not look up local rates and makes no network request. It provides arithmetic only and is not tax advice. For official filings, follow your tax authority's rules on rounding and rate application.

Frequently asked questions

How do I add sales tax to a price?

Multiply the price by 1 plus the tax rate as a decimal. For 8% tax, multiply by 1.08. A 50 item costs 54 with tax.

How do I remove VAT from a total?

Divide the total by 1 plus the VAT rate. For a 120 total with 20% VAT, 120 ÷ 1.2 = 100 net and 20 VAT.

Why is subtracting the tax percentage from the total wrong?

The percentage applies to the net price, not to the total. Taking 20% off 120 gives 96, but the true net price is 100.

What is the difference between sales tax, VAT and GST?

Sales tax is charged once at the final sale. VAT and GST are charged at each stage of production and supply, but consumers see them added to or included in the final price. The arithmetic used here is the same.

Does the tool know my local tax rate?

No. Enter the rate yourself. Check your local tax authority or receipt for the correct figure.

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