Percentages & Everyday Math
VAT / Sales Tax Calculator
Add or remove VAT and sales tax from net or gross prices, including multiple items.
Result
Enter your numbers and press Calculate to see the result.
Calculating…
How VAT and sales tax math works
Both VAT and sales tax are a percentage added on top of a net price. The calculator works in two directions: add tax to a net amount to get the gross price, or remove tax from a gross amount to recover the pre-tax price — a common need for invoices and expense reports.
Formulas
Gross = net × (1 + rate ÷ 100)
Net = gross ÷ (1 + rate ÷ 100)
Tax amount = gross − net
Worked examples
- Add 20% VAT to $100 — 100 × 1.20 = $120 gross; the tax is $20.
- Remove 20% VAT from $120 — 120 ÷ 1.20 = $100 net. Subtracting 20% of 120 would give $96, which is wrong — the tax was charged on the net, not the gross.
- Add 8.875% sales tax to $50 — 50 × 1.08875 = $54.44.
VAT vs. sales tax
Both add a percentage to a price, but they are collected differently. Sales tax (common in the US) is added once, at the final sale to the consumer, and shown on top of the shelf price. VAT (used across the EU, UK, and much of the world) is charged at every stage of production, with businesses reclaiming what they paid, and is usually already included in the displayed price. The arithmetic in this calculator is the same for either — what differs is whether the rate is added at checkout or baked into the ticket price.
Tax-inclusive vs. tax-exclusive prices
This is where the "remove tax" direction matters. If a receipt shows a gross, tax-inclusive total and you need the net
figure for an expense claim, divide by 1 + rate — do not subtract the rate from the gross, which
overstates the tax. For example, stripping 20% VAT from £120 gives £100 net and £20 tax, not £96.
The quantity field multiplies the amount first, which is handy for line items. For discounts combined with tax, see the discount calculator.
Reverse VAT calculator: remove tax from a gross total
A reverse VAT calculation finds the net price hidden inside a tax-inclusive amount. Divide the gross price by 1 plus the tax rate as a decimal. For a gross invoice total of 1,250 at 25% VAT, net is 1,250 ÷ 1.25 = 1,000 and VAT is 250. The VAT portion of a gross price is not simply gross × 25%, because the rate was originally applied to the smaller net amount.
Add sales tax to a purchase
To calculate a price after sales tax, multiply the pre-tax subtotal by 1 plus the combined rate. A $79.95 purchase at 8.25% becomes $79.95 × 1.0825 = $86.55 after rounding to cents, with $6.60 tax. In jurisdictions with state, county, and city components, enter the combined rate that applies to the transaction. Rates and taxable items differ by location, so the calculator does not automatically select a local rate.
Tax-inclusive and tax-exclusive invoice totals
“Tax exclusive” means the entered or displayed amount is net and tax must be added. “Tax inclusive” means tax is already part of the gross amount and must be extracted for a net/tax breakdown. Quotes, receipts, online stores, and expense reports may label these values as subtotal, before tax, excluding VAT, including VAT, gross, or total. Choose the calculator direction based on what the entered amount represents, not merely the document label.
VAT calculation for multiple items
Quantity multiplies the entered unit amount before tax is added or removed. Ten net items at $24.50 each produce a $245 subtotal. At 20% tax, the tax is $49 and the gross line total is $294. Depending on local rules and software, an invoice may round tax per line or on the final subtotal, which can create a one-cent difference on large orders or fractional unit prices.
Common VAT and sales tax rates
The tool accepts any non-negative percentage because there is no single global VAT or sales tax rate. Different rates can apply to food, books, accommodation, digital services, imports, and other categories, and exemptions may depend on the buyer or seller. Always use the current rate for the relevant place, date, product, and transaction type rather than relying on a generic example rate.
The sales tax formula
Adding tax is a single multiplication; removing it is a division, and that asymmetry is where most manual errors happen. Subtracting the tax percentage from a gross total does not give the net price.
gross = net × (1 + rate) · net = gross ÷ (1 + rate) · tax = gross − net
On a $108 total at 8% tax, the net price is 108 ÷ 1.08 = $100 and the tax is $8. Taking 8% off $108 would give $99.36 — close enough to look right, and wrong on every invoice.
Why US sales tax depends on the exact address
In the US there is no national sales tax. The rate you pay is a stack of separate jurisdictions, which is why two shops on opposite sides of one street can charge different amounts:
combined rate = state + county + city + special district
Special districts fund things like transit authorities and stadium bonds, and their boundaries follow neither city nor county lines. That is why sales tax is looked up by address or ZIP+4 rather than by city name — and why a rate you find for "Austin" may not apply three blocks away.
US state base rates
These are the statewide portions only. Local additions typically add another 1–5 percentage points, so always confirm the combined rate with the state's department of revenue before filing anything.
| State | State rate | Note |
|---|---|---|
| Texas | 6.25% | Local add-ons capped at 2%, so Austin and most Texas cities land at 8.25% |
| California | 7.25% | Highest state base in the country; districts push many cities past 9.5% |
| Washington | 6.5% | Heavy local additions — Bellevue and the Seattle area run around 10% |
| New York | 4.0% | Counties add most of the burden; Erie County covers Buffalo |
| Florida | 6.0% | Counties add a discretionary surtax, often 0.5–1.5% |
| Arizona | 5.6% | Called Transaction Privilege Tax; Glendale and Gilbert add city rates |
| South Carolina | 6.0% | Counties may add local option and capital projects taxes |
| Georgia | 4.0% | Counties such as Gwinnett add several points on top |
| North Carolina | 4.75% | County rates apply on top, including Guilford County for Greensboro |
| Washington, D.C. | 6.0% | Single district rate — no county or city layer |
States with no sales tax, and Hawaii's exception
Five states levy no statewide sales tax: Delaware, Montana, New Hampshire, Oregon, and Alaska — though Alaskan boroughs and cities may charge their own, so "no sales tax" is only true at the state level there.
Hawaii is not a sales tax state either, despite looking like one. It charges a General Excise Tax on a business's gross receipts, at 4% statewide with a county surcharge that brings Oahu to 4.5%. The legal difference matters: GET is a tax on the seller that is commonly passed on to the customer, so the visible rate can exceed the headline figure once it is added to the price and taxed itself.
Canada: GST, PST, and HST
Canada stacks a 5% federal GST with provincial tax, and the combination differs by province:
| Province | Structure | Combined |
|---|---|---|
| Alberta | GST only — no provincial sales tax | 5% |
| British Columbia | 5% GST + 7% PST charged separately | 12% |
| Ontario | Harmonised into a single HST | 13% |
| Quebec | 5% GST + 9.975% QST | ≈ 14.975% |
Where GST and PST are charged separately, they both apply to the pre-tax price — one is not calculated on top of the other. Quebec has worked this way since 2013.
What this tax calculator does not determine
It performs arithmetic but does not decide tax nexus, place of supply, exemptions, registration thresholds, input-tax credits, or filing obligations. Those rules vary and can change. For bookkeeping or tax returns, verify the applicable rate and rounding method with official guidance or a tax professional. After finding a tax-inclusive price, the profit margin calculator can help evaluate pricing, but sales tax collected from a customer is generally not business revenue.
VAT / Sales Tax Calculator — frequently asked questions
What is the sales tax formula?
To add tax, multiply the net price by (1 + rate). To remove it, divide the gross total by (1 + rate). Subtracting the percentage from a tax-inclusive total gives the wrong answer.
Why does sales tax differ by ZIP code or address?
A US combined rate stacks state, county, city, and special district taxes. District boundaries follow neither city nor county lines, so the rate can change between two addresses on the same street.
Which states have no sales tax?
Delaware, Montana, New Hampshire, and Oregon have none at all. Alaska has no state sales tax, but boroughs and cities there can levy their own.
Does Hawaii have sales tax?
No. Hawaii charges a General Excise Tax on a business's gross receipts — 4% statewide, 4.5% on Oahu. It is levied on the seller rather than the buyer, though it is normally passed on in the price.
What is the sales tax in Alberta and British Columbia?
Alberta charges only the 5% federal GST. British Columbia adds a 7% provincial sales tax on top of it for a combined 12%, with both applied to the pre-tax price.
How do I add VAT to a price?
Multiply the net price by (1 + rate ÷ 100). At a 20% rate, a net price of $100 becomes 100 × 1.20 = $120 gross, of which $20 is tax.
How do I remove VAT from a gross price?
Divide the gross price by (1 + rate ÷ 100) — do not subtract the percentage. A $120 gross price at 20% VAT is 120 ÷ 1.20 = $100 net. Subtracting 20% would wrongly give $96.
What is the difference between net and gross?
The net amount is the price before tax; the gross amount is the price after tax is added. The difference between them is the tax amount itself.
Does this work for US sales tax as well as VAT?
Yes. Mathematically VAT and sales tax are applied the same way — a percentage added on top of the net price — so you can enter any rate, from a state sales tax to a European VAT rate.