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VAT and sales tax calculator

Add VAT or sales tax to a price, or work backwards from a price that already includes it.

VAT and sales tax calculator
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Price with tax

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How it works

Adding tax is a multiplication: a net price of 100 at 20% becomes 100 × 1.20 = 120. Removing it is a division, not a subtraction: 120 ÷ 1.20 = 100. Taking 20% off 120 would give 96, which is the most common mistake.

Gross = Net × (1 + rate) · Net = Gross ÷ (1 + rate)

  • rate — tax rate as a decimal (20% = 0.20)

The default rate is the standard rate where your currency is used; change it for reduced rates, such as food or books, or for a different state or country.

Common questions

How do I calculate the VAT included in a price?

Divide the gross price by 1 plus the rate, then subtract: for 120 at 20%, 120 ÷ 1.2 = 100, so the VAT is 20.

Is sales tax the same as VAT?

Both are taxes on spending. VAT is charged at each stage of production and usually included in shelf prices; US sales tax is added at the till. The arithmetic is the same.