How to use the sales Tax & VAT Calculator
- Enter the amount.
- Enter the tax rate (in %).
- Choose the the amount is from the list.
- Choose the currency from the list.
- The result updates instantly as you type. There is no button to press.
- Use Copy result to copy the figures, or Copy link to share a link that reopens the sales Tax & VAT Calculator with the same inputs.
How it works
Sales tax in the US and Canada, VAT in the UK, EU and many other countries, and GST in places like Australia, India and New Zealand all work the same way mathematically: a percentage is added on top of the net price. This calculator handles both directions.
Adding tax is simple multiplication: a 20% tax on 100 is 20, so the total is 120. Removing tax trips up a lot of people. You cannot just take 20% off a VAT-inclusive price, because the tax was calculated on the smaller net amount, not on the total. Instead, divide the gross price by 1 + the rate. For 20% VAT on 120, that is 120 ÷ 1.2 = 100. Taking 20% off 120 would wrongly give 96.
The calculator also shows the tax as a share of the gross price, the "VAT fraction". At a 20% rate, tax makes up 1/6 (16.667%) of any VAT-inclusive price. Common rates include 20% UK VAT, 19% German VAT, 10% Australian GST, 5% Canadian GST and US state sales taxes from 0% to over 7%, plus local taxes.
Formula
Write the rate as a decimal, so 20% = 0.20. The share of a tax-inclusive price that is tax equals rate / (1 + rate).
Example
An item costs £100 before UK VAT at 20%: the VAT is £20 and the shelf price is £120. Going the other way, a receipt for £120 including VAT contains 120 − 120 ÷ 1.2 = £20 of VAT. For a US purchase of $59.99 with 8.875% sales tax, the tax is $5.32 and the total is $65.31.
Frequently asked questions
Why can't I just subtract the percentage to remove VAT?
Because the tax was calculated on the net price, not the gross. Subtracting 20% from a 20%-VAT price removes too much. Divide by 1.20 instead.
How do I combine state and local sales tax?
Add the rates together. For example, a 6% state tax plus a 1.5% city tax is 7.5% in total, which you can enter as one rate.
Are prices with VAT rounded?
Businesses usually round tax to the nearest cent or penny per invoice or per line. This calculator shows the result to two decimals, so you may see a one-cent difference from a receipt.
Disclaimer: This calculator gives estimates for general information and education. It is not financial, tax or investment advice. Lenders, banks and tax authorities may round differently, charge fees or apply rules this tool does not model, so confirm figures with a qualified professional or your provider before making decisions.