Add sales tax to a price or work backwards from a tax-inclusive total to find the net amount and tax paid.
Sales tax is a percentage added to the price of goods and services at the point of sale. The rate depends on your country, state, county, and sometimes city.
Adding tax: Total = Net × (1 + Rate ÷ 100)
Removing tax: Net = Total ÷ (1 + Rate ÷ 100)
If a receipt shows a tax-inclusive total but you need the pre-tax figure for accounting or expense reports, use the "remove tax" mode. Dividing the total by the tax rate directly would give the wrong answer.
Sales tax rates vary widely — from 0% in some US states to 20%+ VAT in parts of Europe. Always confirm the current rate for your location, as combined local rates can differ from the headline state rate.
Different countries use different consumption-tax systems, but this calculator handles them all because the underlying math is the same. Sales tax, used in the United States, is added only at the final point of sale to the end consumer. VAT (Value-Added Tax), used across Europe and much of the world, is collected at every stage of the supply chain, though the consumer ultimately bears it — and displayed prices usually already include it. GST (Goods and Services Tax), used in countries like Canada, Australia, and India, works similarly to VAT. Whether you're adding US sales tax to a pre-tax price or stripping VAT out of a European total, use "add tax" or "remove tax" accordingly.
In the United States there is no national sales tax. Instead, the rate you pay is built up from several layers: a state rate, plus optional county, city, and special-district rates. That's why the "combined" rate at a specific address can be noticeably higher than the headline state rate. For example, a 6.25% state rate might become 8.25% or more once local rates are added. Five states — Alaska, Delaware, Montana, New Hampshire, and Oregon — have no statewide sales tax at all, though some localities in Alaska levy their own.
A frequent mistake is trying to remove an 8% tax by taking 8% off the total. That's wrong, because the 8% was calculated on the smaller pre-tax amount, not the larger total. If a tax-inclusive total is $108 at an 8% rate, the pre-tax amount is $108 ÷ 1.08 = $100, and the tax is $8 — not $108 × 0.08 = $8.64. The "remove tax" mode above applies the correct formula automatically, which matters when you're reconciling receipts or filing expenses.
Multiply the price by the tax rate divided by 100 to get the tax amount, then add it to the price. For a $50 item at 8%, the tax is $4 and the total is $54. Alternatively, multiply the price by 1.08 to get $54 directly.
Divide the tax-inclusive total by (1 + rate/100). A $54 total at an 8% rate has a pre-tax price of $54 ÷ 1.08 = $50, with $4 of tax. Use the "remove tax" mode above to do this automatically.
Combined state-and-local rates can exceed 10% in some jurisdictions. Several cities reach 10–11% once city and special-district taxes are stacked on top of the state rate, so always check the rate for the exact location.
They achieve a similar outcome — taxing consumption — but work differently. Sales tax is charged once at the final sale, while VAT is collected at each stage of production and distribution. For a simple price calculation, the math is identical, so this tool works for both.
It depends on your jurisdiction. Many US states tax certain services but exempt others, and the rules change frequently. Check your state's revenue department for the specific services that are taxable where you operate.