Online VAT & Sales Tax Calculator

The quickest way to add or remove tax from a price. Our free, instant tax calculator works for VAT and sales tax, with a reverse calculation feature for finding the price before tax.

Remove Tax Add Tax

Calculation Breakdown

Net Amount

$0.00

Tax Amount

$0.00

Gross Amount

$0.00


Price Composition

Calculation History

NetTaxGross

How Our Tax Calculator Works

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Enter Your Figures

Input the monetary amount and the tax percentage rate (e.g., 20 for 20%).

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Choose Calculation

Use the toggle to select whether you want to 'Add Tax' to a net price or 'Remove Tax' from a gross price.

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Get Instant Results

Click 'Calculate' to see the Net, Tax, and Gross amounts instantly, plus a visual breakdown.

Demystifying Value-Added Tax (VAT) vs. Sales Tax

For consumers and business owners alike, understanding taxes on goods and services is crucial. Two of the most common types are Value-Added Tax (VAT) and Sales Tax. While they often seem similar, their application is quite different. Our powerful **tax calculator online** can handle both, but knowing the difference is key to financial literacy.

What is VAT? The European Model

VAT is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. The end consumer ultimately pays the full VAT, but businesses collect and pay it to the government at various stages. If you need to **calculate VAT** from a price, you're typically working with a price that either needs tax added or requires a **reverse vat calculator** to find the pre-tax cost.

The **value added tax formula** to find the gross price is: Net Price * (1 + VAT Rate). To find the net price from the gross, you'd calculate: Gross Price / (1 + VAT Rate). This is often called working out VAT backwards.

Understanding the US Sales Tax System

In contrast, Sales Tax is a simpler, one-time tax collected only at the final point of sale to the consumer. Businesses do not charge each other sales tax for raw materials. This makes a **USA sales tax calculator** a vital tool for retailers. The question of **how to calculate sales tax** is straightforward: you multiply the retail price by the local tax rate. Our tool excels as an **easy tax calculator** for this purpose.

Why a Universal Tax Calculator is Essential

Whether you're a business needing to **add vat to price** for an invoice in the UK or a shopper wanting to know **how much is tax on a purchase** in California, the core mathematics are the same. A versatile **price including tax calculator** saves time and prevents errors. It helps you quickly find **what is the price before tax**, an essential task for accounting and budgeting. By providing a clear breakdown, you can confidently manage your finances, whether you're dealing with VAT, Sales Tax, or a Goods and Services Tax (GST).

Frequently Asked Questions

How do you calculate VAT?expand_more

To calculate and add VAT to a price (net amount), you multiply the net amount by the VAT rate percentage. For example, to add 20% VAT to $100, you calculate $100 * 0.20 = $20 VAT. The final gross price is $120. Our VAT calculator does this instantly for you.

What is a reverse VAT calculator?expand_more

A reverse VAT calculator determines the original price (net amount) and the VAT amount from a price that already includes VAT (gross amount). To do this, you divide the gross amount by (1 + VAT rate). For example, to find the pre-tax price of a $120 item with 20% VAT, you calculate $120 / 1.20 = $100. Our tool's 'Remove VAT' function performs this reverse calculation automatically.

Can I use this for US Sales Tax?expand_more

Yes, absolutely. Although named differently, the calculation for US Sales Tax is mathematically identical to adding VAT. Simply enter the item price, your state or local sales tax rate in the 'Tax Rate %' field, and our tool will work as a powerful sales tax calculator.

How do I find the price before tax?expand_more

To find the price before tax, you need the total price (including tax) and the tax rate. Use our calculator's 'Remove VAT / Tax' mode. Enter the total price in the amount field and the correct tax percentage. The 'Net Amount' displayed will be the price before tax was added.