VAT and Sales Tax Calculator
Add tax to a price or work out the price before tax.
VAT versus sales tax
VAT (value added tax) is used in the UK, the EU and many other countries, and is normally included in the price shown on the shelf. Sales tax, common in the United States, is usually added at the till. The calculation is the same, so one tool handles both.
Adding tax
Multiply the price by the rate and add it on. A price of 100 with 20% tax has 20 of tax and a total of 120.
Removing tax
This is where people slip up. To get the price before tax from a total, divide by 1 plus the rate. A total of 120 with 20% tax is 120 ÷ 1.20 = 100, not 120 minus 20% (which would be 96).
Rates differ by country, region and product type, so use the rate that applies to your purchase.
Frequently asked questions
Why not just subtract the percentage from the total?
Because the tax was calculated on the pre-tax price, not on the total. Dividing by 1 plus the rate reverses it correctly.
Can I use this for GST or other taxes?
Yes. Any tax that is a percentage of the price works the same way.
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