How do I calculate sales tax on a price?

Multiply the price by (1 + tax rate ÷ 100). For a $100 item with 8.5% tax: $100 × 1.085 = $108.50. The tax amount is $8.50.

How do I remove tax from a price that already includes tax?

Divide the total by (1 + tax rate ÷ 100). If you paid $108.50 with 8.5% tax included: $108.50 ÷ 1.085 = $100 pre-tax.

What is the average US sales tax rate?

There is no federal sales tax in the US. Combined state and local rates average around 7%, but range from 0% (e.g. Oregon, Montana) to over 10% in some localities.

VAT (Value Added Tax) is a consumption tax used in most countries outside the US. In the UK the standard rate is 20%. In the EU it ranges from 17% to 27% depending on the country.

How do I calculate VAT?

To add 20% VAT to a price: multiply by 1.20. To remove VAT from a VAT-inclusive price: divide by 1.20. For example, £120 ÷ 1.20 = £100 before VAT.

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Sales Tax Calculator

Add sales tax or VAT to any price, or reverse-calculate the pre-tax amount from a tax-inclusive total. Works for any tax rate worldwide.

Add tax to a price

Enter the price before tax and the tax rate. Results show the tax amount and total to pay.

Price before tax

Tax / VAT rate

Enter price and tax rate above

Common rates:

Remove tax from a tax-inclusive total

Enter a price that already includes tax to find the original pre-tax price.

Total (tax included)

Enter total and tax rate above

Sales tax and VAT reference rates

Region / Country	Standard rate	Notes
United States (federal)	0%	No federal sales tax — rates vary by state
US average (combined)	~7%	Ranges from 0% (OR, MT, NH, DE) to 11.5%+
California	7.25% + local	Combined avg ~8.7%
New York	4% + local	NYC combined rate 8.875%
Texas	6.25% + local	Max combined 8.25%
United Kingdom	20% VAT	Reduced rate 5% · Zero rate for food/children's
European Union	17–27% VAT	Luxembourg 17% · Hungary 27%
Canada (GST)	5% federal	Plus provincial HST/PST (5–15% combined)
Australia (GST)	10%	Most goods and services

How to calculate sales tax

To add tax: multiply the pre-tax price by (1 + rate ÷ 100). For an $80 item with 8.875% tax: $80 × 1.08875 = $87.10. The tax amount alone is $80 × 0.08875 = $7.10.

How to remove tax from a tax-inclusive price (reverse VAT)

Divide the total by (1 + rate ÷ 100). If you paid $120 including 20% VAT: $120 ÷ 1.20 = $100 before VAT. The VAT amount was $20. This is the most commonly misunderstood calculation — many people incorrectly subtract 20% from $120 and get $96, which is wrong.

Frequently asked questions

How do I calculate 8.5% sales tax on $50?▾

$50 × 0.085 = $4.25 tax. Total = $50 + $4.25 = $54.25. Using the formula: $50 × 1.085 = $54.25.

How do I remove VAT from a price?▾

Divide the VAT-inclusive price by (1 + VAT rate ÷ 100). For 20% VAT: divide by 1.20. A £60 price including 20% VAT: £60 ÷ 1.20 = £50 before VAT. The VAT is £10.

Which US states have no sales tax?▾

Oregon, Montana, New Hampshire, Delaware, and Alaska have no statewide sales tax. Alaska allows local sales taxes, so some municipalities do charge sales tax.

What is the difference between sales tax and VAT?▾

Sales tax (used in the US) is charged only at the final point of sale to the consumer. VAT (used in the UK, EU, and most of the world) is charged at each stage of production and distribution, but businesses can reclaim the VAT they paid on inputs. The end consumer pays the same total amount either way.

Is this sales tax calculator free?▾

Yes — completely free, no signup, no ads. Results calculate instantly in your browser.