Whether you are pricing products, filing expenses or checking a receipt, this calculator adds tax, extracts it from a tax-inclusive price, or reveals the rate that was applied.
How to use the Sales Tax Calculator
- 1 Choose "Add tax", "Remove tax" or "Find tax rate".
- 2 Enter the price and the tax rate.
- 3 Copy the net, tax and gross amounts.
Formula
Add tax: Gross = Net × (1 + Rate ÷ 100) Remove tax: Net = Gross ÷ (1 + Rate ÷ 100) Find rate: Rate = (Gross − Net) ÷ Net × 100
Worked examples
Input: Net $250
Result: Gross $270.63
Tax $20.63
Input: Gross £120
Result: Net £100.00
VAT £20.00 — not £24
Removing tax: divide, don't subtract
A common mistake is taking 20% off a VAT-inclusive price to find the net amount. Because the tax was calculated on the net price, you must divide by 1.20 instead: £120 ÷ 1.2 = £100, so the VAT is £20 (not £24).
Sales tax vs. VAT
US sales tax is added at the till and varies by state, county and city. VAT and GST (used in the UK, EU, Australia, Canada and many others) are usually included in shelf prices. The maths is identical; only the rate and where it is shown differ.
Frequently asked questions
How do I add 7% tax to a price?
Multiply the price by 1.07.
How do I calculate the tax included in a price?
Tax = Gross − Gross ÷ (1 + rate). With 20% VAT, the tax is one sixth of the gross price.
Does this support any currency?
Yes — the maths is the same in any currency; the $ sign is only a label.
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