Sales Tax Calculator
Calculate sales tax, VAT, or GST instantly. Add tax to a price or remove tax from an inclusive amount. Works for US sales tax, UK VAT, EU VAT, Canadian GST/HST, and Australian GST.
Whether you are shopping in the US where tax is added at checkout, or working with VAT-inclusive prices in the UK and Europe, this calculator handles both. Add sales tax to a net price, or extract the VAT from a gross price to see the pre-tax amount.
For other percentage calculations, visit our percentage calculator or learn how to calculate percentages with our complete guide.
How to Calculate Sales Tax
Sales tax is calculated by multiplying the purchase price by the tax rate. In the United States, sales tax is added on top of the listed price at checkout.
The Sales Tax Formula:
For example, if you are buying a $50 item in California with 7.25% sales tax:
You pay $53.63 at checkout
Always check the final price before you reach the checkout. Sales tax varies by state, county, and even city. The sticker price is never the final price in the US.
How to Calculate VAT
VAT (Value Added Tax) works differently from US sales tax. In the UK and most of Europe, prices displayed already include VAT. The standard UK VAT rate is 20%.
Adding VAT to a Net Price
If you have a price without VAT and need to add it:
Price including VAT: 120 GBP
Removing VAT from a Gross Price
If you have a VAT-inclusive price and need to find the net amount:
Price excluding VAT: 100 GBP
This is useful for businesses reclaiming VAT or when invoicing to other VAT-registered businesses.
US Sales Tax Rates by State
Sales tax in the United States varies significantly by state. Some states have no sales tax at all, while others charge over 7%. Note that local taxes may add additional percentage points.
| State | State Rate | Avg Local Rate | Avg Combined |
|---|---|---|---|
| California | 7.25% | 1.57% | 8.82% |
| Texas | 6.25% | 1.94% | 8.19% |
| New York | 4.00% | 4.52% | 8.52% |
| Florida | 6.00% | 1.02% | 7.02% |
| Illinois | 6.25% | 2.56% | 8.81% |
| Pennsylvania | 6.00% | 0.34% | 6.34% |
| Washington | 6.50% | 2.67% | 9.17% |
| Nevada | 6.85% | 1.38% | 8.23% |
| Arizona | 5.60% | 2.77% | 8.37% |
| Colorado | 2.90% | 4.87% | 7.77% |
States with No Sales Tax
Five US states have no state sales tax:
- Alaska (though local taxes may apply)
- Delaware
- Montana
- New Hampshire
- Oregon
VAT Rates by Country
VAT rates vary across countries. Here are the standard rates for major economies:
| Country | Standard VAT Rate | Reduced Rate(s) |
|---|---|---|
| United Kingdom | 20% | 5%, 0% |
| Germany | 19% | 7% |
| France | 20% | 10%, 5.5%, 2.1% |
| Italy | 22% | 10%, 5%, 4% |
| Spain | 21% | 10%, 4% |
| Netherlands | 21% | 9% |
| Ireland | 23% | 13.5%, 9%, 4.8% |
| Sweden | 25% | 12%, 6% |
| Australia (GST) | 10% | 0% |
| Canada (GST) | 5% | Varies by province |
Reduced rates typically apply to essential items like food, childrens clothing, books, and public transport.
Sales Tax vs VAT – Key Differences
While both are consumption taxes, there are important differences between US sales tax and VAT:
| Feature | US Sales Tax | VAT |
|---|---|---|
| Display | Added at checkout | Included in price |
| Who collects | Final retailer only | Every business in chain |
| Rate consistency | Varies by location | National rate |
| Business reclaim | Generally no | Yes (input VAT) |
| Typical range | 0% – 10% | 17% – 27% |
Sales Tax Calculator Examples
Here are practical examples showing how to calculate sales tax in different scenarios:
Example 1: US Online Purchase
Final price: $323.67
Example 2: UK VAT Addition
Invoice total: 600 GBP
Example 3: Extracting VAT from Receipt
VAT content: 14 GBP
Example 4: Australian GST
Price with GST: 165 AUD
Example 5: Canadian HST
Final price: 226 CAD
Tax Calculation Tips
Budget an extra 5-10% on top of listed prices when shopping in the US. Keep receipts if you are a foreign visitor – some states offer tax refunds for tourists.
Keep all VAT receipts. You can reclaim input VAT on business purchases. Use accounting software to track VAT automatically and submit returns on time.
If selling internationally, you may need to register for VAT in multiple countries. Thresholds vary – check local requirements. Digital services have special rules.
For more complex tax calculations involving your income, check out our income tax calculator, national insurance calculator, or take home pay calculator.
Frequently Asked Questions
To find the tax included in a total, divide the total by (1 + tax rate). For example, with 8% tax: Net = Total / 1.08. Then subtract the net from total to get the tax amount. For a $108 total: $108 / 1.08 = $100 net, so $8 was tax.
Total = Price x (1 + Tax Rate / 100). Or calculate tax first: Tax = Price x (Tax Rate / 100), then add to price. For a $50 item with 7% tax: $50 x 1.07 = $53.50, or $50 + ($50 x 0.07) = $53.50.
Divide the VAT-inclusive price by (1 + VAT rate). For 20% UK VAT: Net Price = Gross / 1.20. For example, 120 GBP / 1.20 = 100 GBP net. The difference (20 GBP) is the VAT content.
The US has no federal sales tax – rates vary by state, county, and city. This means a national retailer would need different prices for every location. Showing pre-tax prices with tax added at checkout is simpler for retailers, though confusing for consumers.
GST (Goods and Services Tax) and VAT (Value Added Tax) work the same way – both are consumption taxes collected at each stage of production. Different countries use different names. Canada and Australia use GST, while the UK and EU use VAT. The calculation method is identical.
If you are VAT-registered for business, you can reclaim VAT on business purchases (input VAT) against the VAT you collect on sales (output VAT). Tourists visiting the UK/EU may be able to claim VAT refunds on goods taken home – look for tax-free shopping schemes.
Exemptions vary by jurisdiction. In the UK, most food, childrens clothes, and books are zero-rated for VAT. In the US, many states exempt groceries, medicine, and clothing from sales tax. Always check local rules for specific categories.
Apply the discount first, then calculate tax on the reduced price. For a $100 item at 20% off with 8% tax: Discounted price = $80, Tax = $80 x 0.08 = $6.40, Total = $86.40. Use our discount calculator to find the sale price first.
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