VAT and Sales Tax Calculator
Add tax to a price, or take it out of a price that already includes tax, at any rate.
How to add tax to a price
Multiply the price before tax by 1 plus the tax rate as a decimal. At a 20% rate, a $100 price becomes $120, and $20 of that is tax.
Tax = Price including tax − Price before tax
How to remove tax from a price
If a price already includes tax, divide it by 1 plus the rate. At 20%, a $120 price is $100 before tax. Don't simply take 20% off: that gives $96 and understates the price before tax.
VAT and sales tax calculator FAQ
How do I remove VAT from a price?
Divide the price including VAT by 1 plus the rate as a decimal. At 20%, a $120 price is 120 ÷ 1.2 = $100 before VAT, so the VAT is $20.
Why isn't removing 20% VAT the same as taking 20% off?
The 20% was added to the price before tax, not to the price that already includes it. Taking 20% off $120 gives $96, but the correct price before tax is $100.
Which tax rate should I use?
It depends on where you sell, where your customer is and what you sell, and many places have reduced rates for some products. This calculator doesn't look up rates, so check the current rate with your tax authority or accountant.
What is the difference between VAT and sales tax?
VAT is charged at each stage of the supply chain and is usually included in the prices shoppers see. Sales tax, as in most US states, is usually charged only on the final sale and added at checkout. The arithmetic for adding or removing either is the same.