CCalclabhub

Sales Tax Calculator

Sales tax and VAT calculations have one common trap: the rate applies to the net price, not to the gross. Adding tax to a net figure means multiplying; removing tax from a gross figure means dividing, and using the wrong operation gives an answer that is close enough to look right but wrong by the tax amount.

Price including tax

$108.00

Price before tax
$100.00
Tax amount
$8.00

Values update as you type. This calculator covers the single scenario its formula assumes — see Common Mistakes for what it leaves out.

The formula this calculator uses

Gross = net x (1 + rate) ; Net = gross / (1 + rate)

rate
Sales tax or VAT rate as a decimal
net
Price before tax
gross
Price including tax

How to check the result by hand

  1. 1

    Decide which figure you have

    If you have the pre-tax price you are adding tax; if you have the total you are removing it. The two use different operations.

  2. 2

    Convert the rate to a decimal

    8% becomes 0.08 and 20% becomes 0.20.

  3. 3

    Add one to the rate

    This gives the multiplier, such as 1.08 for 8% or 1.20 for 20%.

  4. 4

    Multiply or divide

    Multiply a net price by the factor to get gross, or divide a gross price by the factor to get net.

  5. 5

    Find the tax amount

    The tax is the gross minus the net, which is 8 for a 108 gross at 8%, or 16.67 for a 100 net at 20%.

For worked examples, common mistakes and the limits of this formula, read the full How To Calculate Sales Tax page.