TheFreeTool

Sales Tax Calculator

Enter a price and a tax rate. Add the tax on top, or switch to take the tax out of a price that already includes it.

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Good to know

This is an estimate for general information. It is not tax, legal or financial advice. Your payslip can differ because of tax codes, credits, local taxes, benefits and your employer's rules. Check official guidance or ask a qualified adviser.

What it does

  • Add sales tax or VAT to a price
  • Take tax out of a tax-inclusive total
  • Shows the price before tax and the tax amount
  • Works in any currency from the currency menu

How to use it

  1. Enter the price.
  2. Enter your local tax rate.
  3. Choose whether to add tax or take it out, then read the result.

How is sales tax worked out?

To add tax, multiply the price by the rate and add the result. A $100 item at 8.25% has $8.25 of tax, so the total is $108.25.

To take tax out of a total, divide by one plus the rate. $108.25 at 8.25% divides by 1.0825 and gives back the $100 price. Do not simply subtract 8.25% of the total, because that takes off slightly too much.

Example

A price of $100 with 8.25% sales tax adds $8.25 and comes to $108.25. Going the other way, a receipt total of $108.25 holds $100 of price and $8.25 of tax.

Questions people ask

Which tax rate should I use?
Use the rate where you buy. In the US it varies by state and city. In many countries the VAT or GST rate is the same nationwide.
Does it work for VAT and GST?
Yes. They are calculated the same way as sales tax.
Is this tax advice?
No. It is a simple calculator. Check your local rules for exemptions and special rates.

Disclaimer

This tool is for general information only. It is not financial, tax, investment or legal advice, and results are estimates that may differ from your bank, lender or tax authority. Rates, limits and tax rules change. Bank and brand names are used only to describe what the tool does; they belong to their owners and we are not affiliated with them. Check the figures with a qualified professional or your provider before you decide. You use this tool at your own risk, and TheFreeTool is not liable for any loss that follows. Read the full disclaimer

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