Sales Tax Calculator

Use this free sales tax calculator to add a known percentage to a price or work backwards from a tax-inclusive total. Choose whether your input is before or after tax, enter the price and provide the percentage rate. The tool separates the pre-tax price, the tax amount and the final tax-inclusive price. It can demonstrate the arithmetic of US sales tax, value-added tax (VAT), or another single percentage-based tax, but it does not automatically determine the applicable rate or whether a transaction is taxable.

What this calculator does

## How to add sales tax. Convert the tax rate from a percentage to a decimal, then multiply the pre-tax price by (1 + rate). For example, if an item costs $100 before tax and the applicable rate is 8%, the tax is $100 × 0.08 = $8 and the total is $108. The calculator shows the rate you entered; it does not infer it from your location or the product category.

How it works

## How to remove included tax. When the total already includes a percentage-based tax, divide the tax-inclusive price by (1 + rate). With $108 including tax at 8%, the pre-tax value is $108 ÷ 1.08 = $100, and the included tax is $8. Subtracting 8% directly from $108 would incorrectly give $99.36 because the 8% rate applies to the tax-exclusive base, not the tax-inclusive total.

## Sales tax versus value-added tax. Mathematically, both can be calculated using the add-tax and extract-tax formulas for a single tax rate. Legally, the way tax applies depends on country, region, product, registration status, exemptions and other factors. This tool does not perform jurisdiction-specific sales-tax compliance, issue invoices or verify current rates. Do not assume that a tax rate shown in a receipt applies to every item or transaction.

Formula

Sales tax addition and reverse tax extraction

Price with tax = Before-tax price × (1 + Tax rate % ÷ 100) Before-tax price = Price with tax ÷ (1 + Tax rate % ÷ 100) Tax amount = Price with tax − Before-tax price

The percentage must be entered manually, be nonnegative and at most 100%. A single rate is assumed. Display amounts are rounded to cents; actual jurisdictional compliance and invoice rounding are not provided.

Worked example

A product sells for $100 before tax, and you enter a hypothetical 8% tax rate.

  1. Tax rate = 8 ÷ 100 = 0.08
  2. Tax amount = $100 × 0.08 = $8
  3. Final total = $100 + $8 = $108

Result: Price before tax = $100; sales tax = $8; total including tax = $108.

Frequently asked questions

How do you calculate sales tax on a price?

Multiply the pre-tax price by the tax rate as a decimal, then add that amount. At 8%, a $100 price has $8 tax and $108 total.

How do I remove tax from a tax-inclusive price?

Divide the inclusive total by (1 + tax rate as a decimal). For $108 including 8% tax, divide by 1.08 to get $100 before tax.

Why can't I subtract 8% from the tax-inclusive price?

The tax percentage applies to the before-tax base. Subtracting 8% of $108 would return $99.36, which is not the $100 tax-exclusive value.

Does this calculator know the tax rate in my city or state?

No. It uses only the rate you enter. Actual tax rates and exemptions vary by location, item and transaction.

Can the calculator remove VAT from a price?

It can perform the arithmetic for a single percentage tax such as VAT. Enter the applicable rate yourself and select the extract-tax mode.

Why might my store receipt differ by a cent?

Some systems round each line item while others calculate and round the total. Tax laws may prescribe a method. This calculator displays a simple two-decimal approximation.

What happens when the tax rate is zero?

No tax is added or extracted; the before-tax and inclusive totals are equal.