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Sales tax and VAT calculator

Find the price with tax included or how much of a total is tax, for taxes added on top (sales tax, VAT) or inclusive in the price, and avoid the classic backing-out mistake.

Educational simulation. Not investment advice. Results are estimates based on the data you enter and do not replace advice from a qualified professional.

Reviewed on Oct 31, 2026
Taxes

Rates vary by state, city and product. Check your local rates; this page has no official rate tables.

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Taxes—
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What is inside the price

What the seller keeps and each tax, in money and as % of the final price.

Tap the chart to see the values.

Tax by tax

Base, amount and weight of each tax in the final price.

Next step

Take this page’s results to another calculator with the fields already filled in.

Take the tax share to the pricing calculator →See margin and markup →

The summary lists your inputs, results, formulas, assumptions and sources. The full report also includes the charts and interpretations, in color. In the print dialog, choose Save as PDF.

Method, assumptions and sources

Formulas

D = sum of inclusive rates; F = sum of rates added on top
Price = pre-tax × (1 + F) ÷ (1 − D); pre-tax = price × (1 − D) ÷ (1 + F)
Inclusive tax = price × rate; tax on top = pre-tax amount × rate
Equivalence: inclusive rate d = d ÷ (1 − d) on top

Assumptions and limits

  • All inclusive taxes apply to the same final price and all taxes on top to the same pre-tax amount; compounding taxes (tax on tax) and special bases are not modeled.
  • No official rate tables: rates are typed in and should be checked with your tax agency.

Official sources and references

Frequently asked questions

How do I add sales tax to a price?

Multiply the pre-tax amount by 1 plus the combined rate: $100 with 6% state and 2% local tax is $100 × 1.08 = $108. If several taxes apply to the same base, add their rates first.

How do I read the result of the page’s example?

The example starts from $100 before tax, with a 6% state and a 2% local sales tax, both added on top. The price is $108.00: $6.00 and $2.00 of tax and $100.00 for the seller. Tax is 7.41% of the final price, or 8.00% of the pre-tax amount.

How do I back sales tax out of a total?

Choose “Price with tax” at the top. For a tax added on top, the pre-tax amount is total ÷ (1 + rate): $108 ÷ 1.08 = $100. Multiplying $108 by 0.92 gives $99.36 and takes out too much tax.

What is an inclusive tax?

A tax defined as a percentage of the final price, which already contains it. 18% of a $121.95 price is $21.95, leaving $100 before tax. The same burden added on top would be quoted as 21.95%.

Where do I find my sales tax rate?

From your state’s department of revenue, which publishes state and local rates, often with a lookup by address. Rates depend on where the buyer is and on the product, and some items are exempt.

Does VAT work the same way?

Yes for the math: VAT is usually added on top of the net price, so the price is net × (1 + rate). The difference is that VAT is charged at each stage of the supply chain with credits for tax paid on inputs, so the business’s net tax depends on its purchases too.

Does this replace my accountant?

No. It shows the math of adding and removing taxes. Exemptions, nexus rules, marketplace collection and filing requirements change what you owe. For pricing and compliance, check with a tax professional.

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Sales tax and VAT: how to add tax to a price and back it out

Adding tax to a price, or backing it out of a total, looks simple but depends on how the tax is defined. Most sales taxes and VAT/GST are added on top of the pre-tax amount. A few taxes are defined inclusive, as a percentage of the final price that already contains them.

Tax added on top (sales tax, most VAT)

Price = pre-tax amount × (1 + rate) and pre-tax amount = price ÷ (1 + rate). With an 8% combined sales tax, $100 becomes $108. To back the tax out of $108, divide by 1.08; multiplying by 0.92 gives $99.36 and takes out too much tax.

Inclusive tax

Price = pre-tax amount ÷ (1 − rate) and pre-tax amount = price × (1 − rate). An 18% inclusive tax is the same burden as 21.95% added on top.

Pre-tax amount $100PriceTax
6% state + 2% local sales tax$108.00$8.00 (7.41% of the price)
20% VAT$120.00$20.00 (16.67% of the price)
18% inclusive tax$121.95$21.95 (18% of the price)

Stacked taxes

In the U.S., state, county and city sales taxes add up to one combined rate applied to the same base. This calculator accepts up to three taxes and lets you set each one as on top or inclusive.

Be careful

Rates depend on where the buyer is, the product and exemptions, and they change. This page has no official rate tables: check your state or local tax agency, or ask an accountant.