Sales Tax Calculator

This calculator adds sales tax or VAT to a price, or takes it out of a price that already includes it. Enter the price, the tax rate in percent and the method, and it shows the final price and the tax amount.

• Add tax: the price is before tax. Tax = Price * Rate / 100, and the final price is the price plus the tax.
• Extract tax: the price already includes tax. Price before tax = Price / (1 + Rate / 100), and the tax is the difference.

Examples

1. Adding 20% VAT to $100:

   Tax = 100 * 20 / 100 = 20.00, so the final price is 120.00

2. Taking 20% VAT out of $120:

   Price before tax = 120 / 1.2 = 100.00, so the tax is 20.00

Extracting is not subtracting the percentage. Taking 20% off $120 gives $96, not $100, because the tax was 20% of the price before tax, not of the total.

Common rates

VAT is charged in the UK (standard rate 20%) and across the EU (standard rates from 17% in Luxembourg to 27% in Hungary). Many countries call it GST, such as Australia (10%) and Canada (5% federal, plus provincial tax in some provinces). The US has no VAT: its sales taxes are set by states and cities, and are added at the till rather than shown in the price.

Frequently asked questions

What is the difference between VAT and sales tax?

VAT is charged at every step of the supply chain, with each business paying tax only on the value it adds, and is usually included in the shelf price. A sales tax is charged once, on the final sale to the consumer, and in the US is usually added at the till. For the buyer, both are a percentage on the price, and this calculator works the same for either.