How to use the sales tax calculator
- 1Choose Add tax to a price, or Remove tax from a total.
- 2Enter the amount and the tax rate, or tap a common rate.
- 3Read the net amount, the tax and the gross total.
Adding tax
Multiply the pre-tax price by the rate: tax = price × rate ÷ 100. A 100 item at 8.25% has 8.25 tax, so you pay 108.25.
Removing tax from a total
Prices that already include tax (common with VAT and GST) need dividing, not subtracting:
price before tax = total ÷ (1 + rate ÷ 100)
For 120 including 20% VAT, the net price is 120 ÷ 1.2 = 100 and the VAT is 20. Taking 20% off 120 would wrongly give 96.
Rates vary
Sales tax rates differ by country, state and even city, and some products are taxed at lower rates or exempt. Check the rate that applies to your sale.
Frequently asked questions
How do I remove VAT from a price?
Divide the price by 1 plus the VAT rate. For 20% VAT, divide by 1.2.
Is sales tax the same as VAT?
Both are taxes on spending. Sales tax is usually added at the till, while VAT and GST are usually already included in displayed prices.
Why is my answer slightly different from my receipt?
Shops often round tax per item or per line, which can differ by a cent from calculating on the total.
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