How to use the Sales Tax & VAT Calculator
- 1
Choose Add tax if you have a price before tax, or Remove tax if the price already includes it.
- 2
Enter the price per item and pick your currency.
- 3
Type the tax rate, or tap one of the standard rates. In the US, type your combined state and local rate.
- 4
Change the quantity if you are buying or invoicing more than one item.
- 5
Read the net, tax and gross figures, and use Copy result to paste the breakdown into an invoice, quote or message.
How to add tax to a price
Adding tax is a single multiplication. Tax = net price × rate ÷ 100, and gross price = net price + tax. You can also do it in one step by multiplying the net price by (1 + rate ÷ 100).
A UK supplier quotes £250 before VAT at the standard 20% rate. The VAT is £250 × 0.20 = £50, and the customer pays £300. In the US, imagine a $59.99 item where the state rate is 6% and the county and city add a further 2.25%, for a combined 8.25%. The tax is $4.9492, which rounds to $4.95, so the receipt shows $64.94.
The calculator rounds the tax to the smallest unit of your currency (cents, pence or whole yen) and then adds it to the net price, so net plus tax always equals the gross figure exactly. When you change the quantity, tax is worked out on the combined amount, which is how most tills and invoicing systems do it.
How to remove VAT or sales tax correctly
To find the pre-tax price from a total, divide by (1 + rate ÷ 100). For 20% VAT, divide by 1.20: a £120 total contains £100 of net price and £20 of VAT.
The common mistake is to multiply by 0.8 instead. That takes 20% off the total, giving £96, but the VAT was charged as 20% of the net price, not of the gross. Taking 20% of £120 removes £24, which is £4 more than the VAT actually charged. The VAT share of any tax-inclusive price is rate ÷ (100 + rate), which for 20% is one sixth, or 16.67%.
The table shows what the correct divisor looks like at common standard rates, using a price of 100 that already includes tax:
| Tax rate | Divide gross by | Tax share of gross | Correct net from 100 | Wrong shortcut result |
|---|---|---|---|---|
| 5% | 1.05 | 4.76% | 95.24 | 95.00 |
| 10% | 1.10 | 9.09% | 90.91 | 90.00 |
| 15% | 1.15 | 13.04% | 86.96 | 85.00 |
| 18% | 1.18 | 15.25% | 84.75 | 82.00 |
| 20% | 1.20 | 16.67% | 83.33 | 80.00 |
| 23% | 1.23 | 18.70% | 81.30 | 77.00 |
The error grows with the rate. At 5% the shortcut is out by a few cents per hundred, but at 23% it understates the net price by more than four units in every hundred, which adds up quickly across a year of receipts or an expense claim.
VAT and GST vs US sales tax
VAT (value added tax) and GST (goods and services tax) are charged at every stage of the supply chain. Each registered business charges tax on its sales and reclaims the tax it paid on its purchases, so the full burden falls on the final consumer. In most VAT countries, prices shown to consumers must already include the tax, which is why a shelf price in Paris or Sydney is the price you pay.
The United States has no national sales tax and no VAT. Sales tax is set by states and often topped up by counties, cities and special districts, and it is usually charged only on the final retail sale. Five states (Alaska, Delaware, Montana, New Hampshire and Oregon) have no statewide sales tax, although some Alaskan towns charge a local one. Shelf prices in the US normally exclude tax, so the total at the register is higher than the label.
Canada sits in between. The federal GST is 5%, and depending on the province, it is either combined with a provincial portion into a single HST or charged alongside a separate provincial sales tax. Always use the combined rate for the province where the sale takes place.
About the standard rates in this tool
The quick-pick buttons show standard rates as of late 2026: UK 20%, Ireland 23%, Germany 19%, France 20%, Spain 21%, Italy 22%, Netherlands 21%, Australia GST 10%, New Zealand GST 15%, Canada GST 5%, UAE 5%, Saudi Arabia 15%, Japan consumption tax 10%, Singapore GST 9%, South Africa 15% and India GST 18%.
A standard rate is the default, not the only rate. Many countries apply reduced rates to food, books, children's clothing, public transport or energy, and some goods are zero-rated or exempt. Japan, for example, taxes food and non-alcoholic drinks bought to take home at a reduced 8%. India's GST uses several slabs, and 18% is just the most common one. If you are not sure which applies, type the rate you see on an invoice.
When to check with a tax authority
This calculator does arithmetic. It cannot tell you whether a sale is taxable, which rate applies, whether you need to register, or how to handle cross-border sales and digital services. Those questions depend on where you and your customer are based and what you sell.
For anything you file or charge to customers, confirm the rate with the official source, such as HMRC in the UK, the Australian Taxation Office, the Canada Revenue Agency, your national tax office in the EU, or the revenue department of the US state concerned. Treat the results here as an estimate, not as tax advice.
Frequently asked questions
How do I remove 20% VAT from a price?
Divide the tax-inclusive price by 1.2. For example, 120 ÷ 1.2 = 100, so the VAT is 20. Multiplying by 0.8 gives the wrong answer because VAT is 20% of the net price, not of the total.
How do I calculate sales tax on a purchase?
Multiply the price by the tax rate and divide by 100, then add the result to the price. At 8.25%, a $59.99 item carries $4.95 of tax for a total of $64.94. Use the combined state and local rate for where you are buying.
Is there a national sales tax in the United States?
No. Sales tax is set by individual states, and counties and cities often add their own. Rates differ by location and sometimes by product, so check your state revenue department or a recent receipt for the combined rate.
What is the difference between VAT and sales tax?
VAT is collected at each stage of production and distribution, with businesses reclaiming the tax on their inputs. Sales tax is generally collected once, at the final retail sale. Consumers pay a similar share of the price either way, but the paperwork for businesses is very different.
What is the VAT rate in the UK?
The standard UK VAT rate is 20%. There is also a reduced 5% rate, for example on home energy, and a zero rate on most food and children's clothing. Check GOV.UK for the rate on a specific product.
Why does the per-item tax not match the total exactly?
Tax is rounded to the nearest cent or smallest currency unit. Rounding once on the total can give a slightly different figure from rounding on each item and multiplying, so a few cents' difference is normal.
Last updated on November 9, 2026