Sales Tax & VAT Calculator

Consumption taxes go by different names — sales tax, VAT, GST — but the arithmetic is the same, and the hard direction is always removing tax from a gross figure. This calculator works both ways: add tax to a net price, or extract the tax already baked into a gross price.

How to use it

1. Choose whether your amount excludes tax (net) or already includes it (gross).
2. Enter the amount and your local tax rate.
3. Read the tax portion and the opposite figure — gross if you entered net, net if you entered gross.
4. Use the net figure for bookkeeping and the gross figure for what the customer actually pays.

Frequently asked questions

Why can I not just subtract 20% from a gross price to remove 20% VAT?

Because the 20% was calculated on the smaller net figure. To remove 20% VAT you divide by 1.2, which is a 16.67% reduction, not 20%.

What rate should I use?

It depends on your jurisdiction and product category. US sales tax varies by state and city, UK VAT is 20% standard with reduced rates, and GST rates differ per country. Check your local tax authority.

Is VAT the same as sales tax?

Not structurally. Sales tax is charged once at the final sale; VAT is charged at every stage with businesses reclaiming input tax. For a consumer working out a total, the calculation is identical.

Does this handle compound or multi-level taxes?

Not directly. For jurisdictions that stack a federal and a provincial tax, either enter the combined rate or run the calculation twice.

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