TaxAdd

Sales Tax / VAT Calculator

Two modes: add tax to a pre-tax price, or back out the tax from a final price that already includes it.

Pre-tax amount

Tax rate

Net (pre-tax)

$100.00

Tax

$8.00

Gross (with tax)

$108.00

What you entered

Pre-tax amount: $100Tax rate: 8%

1
Tax amount
$100 × 8/100= $8
2
Gross total
$100 + $8= $108

Result

Tax: $8.00

At a 8% tax rate, the net amount is $100.00, tax is $8.00, and the gross total is $108.00.

Sales tax and VAT on a $100 amount, added and backed out

The middle columns add tax to a $100 pre-tax amount. The right-hand columns do the reverse and split a $100 tax-inclusive total into its net price and its tax, which is the calculation on a receipt that already includes the tax.

Tax rate	Tax on $100 net	Total on $100 net	Net inside a $100 total	Tax inside a $100 total
4%	$4.00	$104.00	$96.15	$3.85
5%	$5.00	$105.00	$95.24	$4.76
6%	$6.00	$106.00	$94.34	$5.66
6.25%	$6.25	$106.25	$94.12	$5.88
7%	$7.00	$107.00	$93.46	$6.54
7.25%	$7.25	$107.25	$93.24	$6.76
8%	$8.00	$108.00	$92.59	$7.41
8.25%	$8.25	$108.25	$92.38	$7.62
8.875%	$8.88	$108.88	$91.85	$8.15
10%	$10.00	$110.00	$90.91	$9.09
20%	$20.00	$120.00	$83.33	$16.67

Because the base is $100, the added-tax columns scale straight to any amount: multiply by 3.5 for a $350 purchase. The two halves of the table are not symmetrical. At 20%, tax is 20% of the net price but only 16.67% of the tax-inclusive total, so you divide a gross figure by 1.20 rather than taking 20% off it. US rates are a combined state, county, city and district figure that can differ between two addresses in the same town and change from year to year, so look up the rate for the exact delivery address rather than assuming a state number. Some goods, notably groceries, clothing and prescriptions, are taxed at a reduced rate or not at all in many jurisdictions. These figures are illustrative, not tax advice.

Backing out VAT

A 20% VAT means the tax is 20% of the pre-tax price — which is 1/6 (16.67%) of the tax-inclusive price. Divide the gross by 1.2, not 0.8.

Frequently asked questions

A product costs $85 and my state charges 8.25% sales tax — what's the total?

Tax = $85 × 0.0825 = $7.01. Total = $85 + $7.01 = $92.01. Enter any pre-tax amount and rate above to get both the tax amount and the total automatically.

A receipt shows $119 total with 20% VAT included — what was the pre-tax price?

Divide by (1 + rate/100): $119 / 1.20 = $99.17 pre-tax. The VAT portion is $119 − $99.17 = $19.83. A common mistake is taking 20% of $119 ($23.80) — that's wrong because the 20% applies to the pre-tax amount, not the total.

What's the difference between sales tax and VAT?

Sales tax (US model) is added at the final point of sale only. VAT (European model) is charged at every stage of production and distribution, with businesses reclaiming tax paid on inputs. For consumers, the end result is similar — a percentage added to the price. This calculator handles both.

Why do US prices not include tax but European prices do?

It's convention and law. US sales tax rates vary by state, county, and even city, making it impractical to label pre-tax prices that work everywhere. European countries mandate tax-inclusive pricing so consumers see the final cost upfront. Both approaches have trade-offs.