Sales tax, VAT or GST rate.
Tax = 100.00 × 8.25 ÷ 100 = 8.25
Gross = 100.00 + 8.25 = 108.25
How to use the Sales Tax & VAT Calculator
- 1Choose Add tax if your amount is before tax, or Remove tax if it already includes tax.
- 2Enter the amount.
- 3Enter the tax rate as a percentage, for example 8.25 or 20.
- 4Read the result, the tax amount and the other total, and check the formula shown underneath.
Net, tax and gross amounts
The net amount is the price before tax. The tax amount is what is owed to the government. The gross amount is the total the customer pays, net plus tax. Invoices and receipts often show all three, and businesses usually need the net and tax figures separately for their records and tax returns.
Sales tax in the United States is normally added at the till, so shelf prices are net. In the UK, the EU, Australia, India and many other countries, value-added tax (VAT) or goods and services tax (GST) is usually already included in the displayed retail price, so you may need to remove it to find the net figure.
How to add tax to a price
To add tax, multiply the net amount by the rate as a decimal to get the tax, then add it on: tax = net × rate ÷ 100 and gross = net × (1 + rate ÷ 100). For a 100 item with 8.25% sales tax, the tax is 8.25 and the total is 108.25.
If a discount also applies, take it off first and then add tax to the reduced price. Our discount calculator handles stacked discounts and tax in one step.
How to remove VAT or GST from a total
To remove tax, divide the gross amount by 1 plus the rate: net = gross ÷ (1 + rate ÷ 100). The tax is then gross minus net. For a total of 120 that includes 20% VAT, the net amount is 120 ÷ 1.20 = 100 and the VAT is 20.
A common mistake is to take 20% of the gross amount and subtract it. That gives 120 − 24 = 96, which is wrong, because the 20% rate applies to the net price, not the total. Dividing is the correct method. If you want to understand why, our guide on how to calculate percentages explains reverse percentage problems.
Common tax rates
Rates vary widely. US state and local sales taxes combined typically range from 0% to around 10%. The standard VAT rate is 20% in the UK, 19% in Germany and 20% in France, with reduced rates for some goods. GST is 10% in Australia, 15% in New Zealand, and in India most goods and services fall into the 5% or 18% slabs, with a higher rate for certain luxury and sin goods.
Rates change from time to time and often depend on the type of product or service, so check the current rate with your local tax authority before relying on a figure for invoicing. You can browse more everyday money tools in our finance calculators.
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Frequently asked questions
What is the difference between sales tax and VAT?
Sales tax is charged once, at the final sale to the consumer. VAT is charged at each stage of production and distribution, with businesses reclaiming the VAT they paid on inputs. For a shopper the arithmetic is the same: a percentage of the net price is added on.
Is GST calculated the same way as VAT?
Yes. GST is a form of value-added tax, so you add or remove it with exactly the same formulas. Choose Add tax or Remove tax and enter the GST rate.
How do I find the tax rate from a net and gross amount?
Subtract the net from the gross to get the tax, divide by the net and multiply by 100. For a net of 50 and a gross of 54, the rate is 4 ÷ 50 × 100 = 8%. The percentage calculator can do this as a percentage change.
Why can my receipt differ by a cent from this result?
Shops may round tax per item rather than on the total, or round in a particular direction. This calculator rounds the final figures to two decimal places, so small differences can appear on receipts with many items.
Can I use this for tax rates with decimals?
Yes. Enter rates such as 8.875 or 7.25 exactly as published and the calculator uses the full precision.