Sales Tax / VAT Calculator
Add tax to a price or remove it to find the net and tax amounts.
Price including tax
$120.00
- Net (before tax)
- $100.00
- Tax
- $20.00
- Gross (including tax)
- $120.00
How to use the Sales Tax / VAT Calculator
- Choose whether to add tax to a price or remove it from a price.
- Enter the amount. This is the price before tax when adding, or including tax when removing.
- Enter the tax rate as a percentage.
- Read the net, tax and gross amounts.
About the Sales Tax / VAT Calculator
Prices are often shown with tax in some countries and without it in others. This sales tax and VAT calculator adds tax to a net price, or removes it from a gross price, and shows the net amount, the tax and the gross amount. It works for any rate, including US sales tax, UK and EU VAT, Canadian GST and Australian GST.
To add tax, the tax amount is the net price × rate ÷ 100, and the gross price is the net price plus that tax. For example, 20% VAT on 100 adds 20 and gives 120.
To remove tax from a price that already includes it, you cannot simply subtract the rate from the gross price, because the tax was calculated on the smaller net price. Instead, net = gross ÷ (1 + rate ÷ 100), and tax = gross − net. So removing 20% VAT from 120 gives a net of 100 and tax of 20, not 24. Rounding is applied only when results are displayed, to the nearest cent, so no accuracy is lost along the way.
Frequently asked questions
What is the difference between VAT and sales tax?
VAT is collected at every stage of production and is shown in the final price in many countries. US sales tax is charged once, at the till, and is usually added to the displayed price.
Why is removing 20% not the same as subtracting 20%?
The tax was calculated on the net price, so it is 20% of the net, not of the gross. Dividing by 1.20 reverses it correctly.
What are net and gross?
Net is the price before tax. Gross is the price including tax.
Can I use it for GST?
Yes. GST works the same way. Enter your local rate and choose whether to add or remove it.
Which tax rate should I use?
Use the rate that applies to your product and location. Rates differ by country, state and sometimes by item, so check your tax authority.