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.

Quick Select Tax Rate:
$
%
Tax Amount
Total (incl. tax)

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:

Sales Tax Formula (Add Tax)
Tax Amount = Price x (Tax Rate / 100)
Total Price = Price + Tax Amount

For example, if you are buying a $50 item in California with 7.25% sales tax:

Example: $50 Item with 7.25% Tax
Tax = $50 x (7.25 / 100) = $3.63
Total = $50 + $3.63 = $53.63

You pay $53.63 at checkout

Quick Tip for US Shoppers

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:

Adding 20% VAT to a Net Price
VAT Amount = Net Price x 0.20
Gross Price = Net Price x 1.20
Example: Adding VAT to a 100 GBP Net Price
VAT = 100 x 0.20 = 20 GBP
Gross = 100 + 20 = 120 GBP

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:

Removing 20% VAT Formula
Net Price = Gross Price / 1.20
VAT Amount = Gross Price – Net Price
Example: Extracting VAT from 120 GBP
Net = 120 / 1.20 = 100 GBP
VAT = 120 – 100 = 20 GBP

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.

StateState RateAvg Local RateAvg Combined
California7.25%1.57%8.82%
Texas6.25%1.94%8.19%
New York4.00%4.52%8.52%
Florida6.00%1.02%7.02%
Illinois6.25%2.56%8.81%
Pennsylvania6.00%0.34%6.34%
Washington6.50%2.67%9.17%
Nevada6.85%1.38%8.23%
Arizona5.60%2.77%8.37%
Colorado2.90%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:

CountryStandard VAT RateReduced Rate(s)
United Kingdom20%5%, 0%
Germany19%7%
France20%10%, 5.5%, 2.1%
Italy22%10%, 5%, 4%
Spain21%10%, 4%
Netherlands21%9%
Ireland23%13.5%, 9%, 4.8%
Sweden25%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:

FeatureUS Sales TaxVAT
DisplayAdded at checkoutIncluded in price
Who collectsFinal retailer onlyEvery business in chain
Rate consistencyVaries by locationNational rate
Business reclaimGenerally noYes (input VAT)
Typical range0% – 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

$299 Laptop in Texas (8.25% tax)
Tax = $299 x 0.0825 = $24.67
Total = $299 + $24.67 = $323.67

Final price: $323.67

Example 2: UK VAT Addition

Adding 20% VAT to 500 GBP service
VAT = 500 x 0.20 = 100 GBP
Total = 500 + 100 = 600 GBP

Invoice total: 600 GBP

Example 3: Extracting VAT from Receipt

Finding VAT in 84 GBP purchase (20% VAT)
Net = 84 / 1.20 = 70 GBP
VAT = 84 – 70 = 14 GBP

VAT content: 14 GBP

Example 4: Australian GST

Adding 10% GST to 150 AUD item
GST = 150 x 0.10 = 15 AUD
Total = 150 + 15 = 165 AUD

Price with GST: 165 AUD

Example 5: Canadian HST

Adding 13% HST (Ontario) to 200 CAD
HST = 200 x 0.13 = 26 CAD
Total = 200 + 26 = 226 CAD

Final price: 226 CAD

Tax Calculation Tips

For US Shoppers

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.

For UK/EU Business Owners

Keep all VAT receipts. You can reclaim input VAT on business purchases. Use accounting software to track VAT automatically and submit returns on time.

For Online Sellers

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

How do I calculate sales tax from a total?

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.

What is the formula for adding sales 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.

How do I remove VAT from a price?

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.

Why is US sales tax not included in the price?

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.

What is the difference between GST and VAT?

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.

Can I claim back VAT on purchases?

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.

What items are exempt from sales tax or VAT?

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.

How do I calculate tax on a discounted item?

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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