VAT and sales tax calculator
Add tax to a price, or take it out of a total, at any rate: US sales tax, VAT or GST.
Total with tax
$108.25
$100.00 plus $8.25 of tax
- Tax $8.25
- Rate 8.25%
At 8.25%, $100.00 before tax comes to $108.25, with $8.25 of tax on top.
To work back from $108.25, divide by 1.0825. Taking 8.25% off would give $99.32, not $100.00.
I’m not an accountant or a financial advisor. This is an estimate, for information only. Check with a professional before you decide.
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| Price before tax | $100.00 | |
|---|---|---|
| + | Tax: price × 8.25% | $8.25 |
| = | Total with tax | $108.25 |
How it works
- Adding tax: total = price × (1 + rate). At 8.25%, $100.00 × 1.0825 = $108.25.
- Taking tax out: price before tax = total ÷ (1 + rate). $108.25 ÷ 1.0825 = $100.00, and the tax is the difference, $8.25.
- Why not just take 8.25% off the total? Because the tax was worked out on the price before tax, which is smaller than the total. 8.25% off $108.25 gives $99.32: 68 cents too little. With 20% VAT the gap grows: 20% off £120 is £96, but the price before VAT is £100.
- The share of tax inside a total is rate ÷ (1 + rate): with 20% VAT, one sixth of what you pay (16.7%) is VAT; with 8.25% sales tax, 7.6%.
Worked example
In Texas, the state charges 6.25% and cities, counties and districts can add up to 2%, so 8.25% at most. A $100.00 purchase at 8.25%: $8.25 of sales tax, $108.25 at the register. Going back: $108.25 ÷ 1.0825 = $100.00. UK VAT at 20%: a £120 price includes £20 of VAT, and the price before VAT is £100.
Sources
- Texas Comptroller — Sales and use tax (6.25% state, up to 2% local)
- California CDTFA — Sales and use tax rates (7.25% statewide, plus district taxes)
- New York State Department of Taxation — Recordkeeping for sales tax vendors (tax shown separately on the receipt)
- Oregon Department of Revenue — Sales tax in Oregon
- GOV.UK — How VAT works
- GOV.UK — VAT rates
- Revenue (Ireland) — Current VAT rates
- Canada Revenue Agency — GST/HST calculator and rates
- Australian Taxation Office — How GST works
- Swiss Federal Tax Administration — Swiss VAT rates
Text checked on September 30, 2026
Good to know
- US sales tax depends on where the sale happens: the state rate plus county, city and district taxes. Look up the combined rate for the address.
- Not everything has the same rate: in the UK, home energy is at 5%, and most food and children’s clothes are at 0%.
- The calculator rounds to the cent at the end. Stores may round the tax line by line, so a receipt can differ by a cent or two.
- It works out the tax on one amount. Whether something is taxable, and whether you have to register or collect tax, depends on the rules where you sell: check with your tax authority.
Frequently asked questions
What’s the difference between VAT and sales tax?
VAT is charged at each step of the chain, and each business claims back the VAT it paid on its own purchases, so in the end the final buyer carries it; in the UK and Australia it’s already inside the price you see. US sales tax is charged on the retail sale: the store adds it at the register and shows it separately on your receipt.
How do I take VAT or sales tax out of a total?
Divide the total by 1 plus the rate. With 20% VAT: £120 ÷ 1.2 = £100. With 8.25% sales tax: $108.25 ÷ 1.0825 = $100.00. The tax is what’s left: £20 and $8.25.
Why can’t I just subtract 20%?
Because the 20% was worked out on the price before VAT, not on the total. 20% of £120 is £24, but the VAT inside £120 is only £20. At a 20% rate, VAT is one sixth of the total, about 16.7%.
What rate should I use?
For US sales tax, the combined rate where the sale happens: in Texas, 6.25% state tax plus up to 2% local (8.25% at most); in California, 7.25% statewide plus district taxes of 0.10% to 2%; Oregon has no general sales tax. For VAT: 20% on most things in the UK, 23% in Ireland, 8.1% in Switzerland. Canada charges 5% GST, or HST where it applies (13% in Ontario); Australia’s GST is 10%.
When do I have to charge VAT in the UK?
Once your VAT-taxable turnover goes over £90,000, you must register. From then on, you add VAT to your prices and can claim back the VAT you pay to other businesses: what you owe is usually the difference.