What is sales tax / VAT?
Sales tax and value-added tax (VAT) are taxes charged on the sale of goods and services, and both the rate and how they're applied vary by country. The United States has no federal sales tax β rates are set by each state and local government, combined rates typically fall somewhere between about 4% and 10%, and a handful of states charge no statewide sales tax at all. The United Kingdom, by contrast, applies a national VAT of 20% on most goods and services. Enter whatever rate applies to you to calculate with this tool.
Formula
Add tax: total = amount Γ (1 + rate Γ· 100)
Extract tax: pre-tax amount = tax-included total Γ· (1 + rate Γ· 100)
Which mode should I use?
- Add tax: use this when you have a pre-tax price and want to know the final amount after tax is added.
- Extract tax: use this when a receipt shows a tax-included total and you want to split it into the pre-tax amount and the tax itself β handy for VAT receipts.
Frequently Asked Questions
How much does the tax rate vary by country?
Quite a lot. The US has no federal sales tax β state and local rates typically run from 0% to around 10%. The UK applies a 20% VAT on most goods and services. Many other countries fall somewhere in between, so always check the rate that applies where you are.
Can I use this calculator to file taxes?
No. This is a simple reference tool for adding or extracting tax from a price. Actual tax filing and accounting require a professional review that accounts for your country's specific tax rules and exceptions.