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Sales Tax Calculator

Calculators

Add sales tax to a price or split a tax-inclusive total into price and tax.

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Quick answer

How much is a $100 item with 8% sales tax?

8% sales tax on $100 is $8.00, so the total is $108.00. To go the other way, a $108.00 receipt includes $8.00 of tax on a $100.00 price.

Tax and total on a $100 purchase
Tax rateTaxTotal
5%$5.00$105.00
6%$6.00$106.00
7%$7.00$107.00
8%$8.00$108.00
9%$9.00$109.00
10%$10.00$110.00
Formula:
Total = price × (1 + rate ÷ 100). To remove tax from a total: price before tax = total ÷ (1 + rate ÷ 100).
Assumptions:
One flat rate on the whole price. Local rates differ and some items are exempt.

These figures are computed with the same formulas as the Sales Tax Calculator above. Change the inputs in the tool to see your own result.

What Sales Tax Calculator does

The Sales Tax Calculator adds tax to a price or takes tax out of a total. Enter a price and a tax rate to see the tax amount and the final price, or switch to "Remove tax" to split a tax-inclusive receipt into the price before tax and the tax itself. Use the quantity box for several identical items, choose your currency, and copy the summary. It works for sales tax, VAT and similar consumption taxes.

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Features and benefits

  • Adds or removes tax in one tool
  • Shows the tax as a share of the total in a chart
  • Handles quantities and any currency
  • Free, private, no rate table to go out of date

How to use Sales Tax Calculator

  1. Choose "Add tax to a price" or "Remove tax from a total"
  2. Enter the amount and your local tax rate
  3. Optionally enter a quantity and choose a currency symbol
  4. Read the price before tax, the tax and the total, and copy the summary

Who should use it

Made for everyone. Typical uses:

  • Checking the final price of a purchase before you pay
  • Working out the tax portion of a receipt for expenses
  • Finding the pre-tax price from a tax-inclusive total
  • Pricing goods for a shop or online store that must show tax separately

Example

A $100 item at 8.5% sales tax has $8.50 of tax and costs $108.50 in total. Going the other way, a receipt total of $108.50 with an 8.5% tax rate splits into $100 before tax and $8.50 of tax. With a 20% VAT-inclusive price of $120, the price before VAT is $100 and the VAT is $20.

Limitations and accuracy

You enter the tax rate yourself, since rates vary by state, city and product type and can change. The calculator applies one flat rate; goods taxed at mixed rates, or with exemptions, need to be calculated separately.

Accuracy: Formulas follow standard published methods and are checked against worked reference examples. Results are estimates based on the values you enter and do not replace advice from a qualified professional.

Expert Tip

To remove tax from an inclusive price, divide by 1 plus the rate; do not simply subtract the rate percentage from the total, because the tax is a share of the smaller pre-tax price.

Frequently asked questions

How do I calculate sales tax?
Multiply the price by the tax rate divided by 100, then add it to the price. $100 at 8.5% is 100 × 0.085 = $8.50 of tax, for a total of $108.50.
How do I remove sales tax from a total?
Divide the total by 1 plus the rate. $108.50 ÷ 1.085 = $100 before tax, and the tax is $8.50.
Why not just subtract 8.5% from the total?
Because 8.5% of $108.50 is $9.22, not $8.50: the tax was calculated on the smaller pre-tax price, so you must divide by 1.085 instead.
What is my sales tax rate?
It depends on where you shop: in the US it combines state, county and city rates, and in other countries it is usually a single VAT or GST rate. Check your receipt or your tax authority's website.
Does it work for VAT and GST?
Yes. Sales tax, VAT and GST are all calculated the same way as a percentage of the price. Use the GST VAT Calculator for quick-rate buttons and the CGST/SGST split used in India.

Sales Tax Calculator: the complete guide

How sales tax is added

Sales tax is a percentage added to the price of goods and services at the point of sale. To add it, multiply the price by the rate divided by 100 and add the result: $100 at 8.5 percent is $8.50 of tax, for a total of $108.50. For several identical items, multiply by the quantity. Three items at $24.99 with 7.25 percent tax come to $74.97 before tax, $5.44 of tax and $80.41 in total.

Rates depend on where you buy. In the United States, the combined rate is the sum of state, county and city taxes, and it can differ from one side of a street to the other. Many other countries use a single national VAT or GST rate. The calculator does not store rates because they change, so type in the one printed on your receipt or listed by your tax authority.

Removing tax from a total

Often you have a total that already includes tax, and you want to know what part is tax, for an expense report or a price comparison. The mistake is to subtract the rate percentage from the total. Because the tax was calculated on the smaller pre-tax price, you must divide by (1 + rate) instead. A total of $108.50 with 8.5 percent tax is 108.50 ÷ 1.085 = $100 before tax and $8.50 of tax. Subtracting 8.5 percent of $108.50 would give $9.22 of tax, which is wrong.

The same calculation handles VAT-inclusive prices. A shop price of $120 including 20 percent VAT is $100 plus $20 of VAT. The "Remove tax from a total" mode gives you the net amount and the tax at once.

Who needs this

Sales tax calculations come up more often than most people expect.

  • Shoppers checking the real price of an online order before paying.
  • Small businesses setting prices that show tax separately, and working out how much tax they hold for the authorities.
  • Freelancers and employees preparing expense reports that need the pre-tax amount.
  • Anyone comparing prices between places with different tax rules, for example a tax-inclusive shop price in one country and a tax-exclusive price in another.

Tax, discounts and tips

The order of operations changes the total. Sales tax is normally charged on the discounted price, so a coupon reduces the tax as well. Apply the discount first with the Discount Calculator, then add tax on the reduced price, or enter both in that tool and let it do the sequence. Restaurant tips are usually calculated on the pre-tax amount, although some people tip on the total; the Tip Calculator handles either.

For goods taxed at different rates, such as groceries at a lower rate and other items at the standard rate, calculate each group separately and add the results. Some products and customers are exempt, and rules for online sales vary, so check the rules that apply to you.

Sales tax in business records

If you sell goods, the tax you collect is not your income. Record it separately from revenue so that your profit and your taxes are correct. When you set a shelf price, decide whether it includes tax. Tax-inclusive pricing is standard in many countries and simplifies the customer experience, while tax-exclusive pricing is typical in the United States. With tax-inclusive prices, use the remove-tax mode to see what you actually earn per sale before you calculate margin with the Profit Margin Calculator.

Related tools and limits

For Indian GST invoices with a CGST/SGST split, use the GST VAT Calculator. For the underlying percentage maths, see the Percentage Calculator. The calculator applies one flat rate to the amount and does not model exemptions, mixed rates or tax on shipping. Your receipt or invoice is the final authority. Nothing you enter is stored or sent.

Learning resources

Explore more in Calculators, read the guides and articles, or see how we test our tools.

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