Sales Tax / VAT Calculator
Add tax to a price, or work backwards from a tax-inclusive total to find the original pre-tax amount — in one click.
*Estimates only. Actual sales tax/VAT rates depend on your jurisdiction and product category.
🧾 Sales Tax vs. VAT, Explained
The math is simple once you know which direction you're calculating.
How it Works
In "Add Tax" mode, it multiplies your pre-tax price by the rate to find the tax owed. In "Extract Tax" mode, it works backward from a tax-inclusive total to reveal the original pre-tax price.
The Formula
Add Tax: Total = Price × (1 + rate). Extract Tax: Pre-Tax Price = Total ÷ (1 + rate), Tax Amount = Total − Pre-Tax Price.
Pro Tip
Never subtract the tax percentage directly from a tax-inclusive total — that's a common error. Always divide by (1 + rate) first to isolate the pre-tax price, then compute the tax as the remainder.
Frequently Asked Questions
What is the difference between sales tax and VAT? +
Sales tax (common in the US) is charged once, at the final point of sale to the consumer, and is added on top of the listed price. VAT (Value Added Tax, common outside the US) is charged at every stage of production but businesses reclaim what they paid, so the consumer effectively pays it once too — and prices shown to consumers are usually already VAT-inclusive.
How do I calculate the pre-tax price from a total that already includes tax? +
Divide the tax-inclusive total by (1 + tax rate as a decimal). For example, a $115 total that includes 15% VAT has a pre-tax price of $115 ÷ 1.15 = $100. Simply subtracting 15% from $115 would give the wrong answer.
Why can't I just subtract the tax percentage directly from a tax-inclusive price? +
Because the tax percentage applies to the pre-tax price, not the total. Subtracting 15% of $115 ($17.25) gives $97.75, which is wrong — the correct pre-tax price is $100. You must divide by (1 + rate), not multiply and subtract.
Do all US states charge the same sales tax rate? +
No. Sales tax varies by state and often by city or county, ranging from 0% (Oregon, Montana, New Hampshire, Delaware, Alaska has no statewide tax) up to combined rates over 9-10% in parts of states like Louisiana and Tennessee.
What items are commonly exempt from sales tax or taxed at a reduced VAT rate? +
Groceries, prescription medications, and certain medical devices are commonly exempt or taxed at a reduced rate in many US states. In VAT countries, essentials like food, books, and children's clothing often carry a reduced or zero rate compared to the standard rate.
Is VAT the same across all European countries? +
No. Standard VAT rates vary by country, roughly from 17% (Luxembourg) to 27% (Hungary), with most EU countries in the 19-25% range. Reduced rates for specific goods also vary significantly by country.