Finance
Sales Tax Calculator
Calculate sales tax additions, extract pre-tax net values from gross amounts, and estimate tax totals.
About This Tool
Use this sales tax calculator to add tax (exclusive) or extract tax (inclusive/reverse VAT) from pricing amounts. Enter a price and tax rate to see net price, tax amount, and total gross price breakdowns instantly.
Sales Tax Formulas
Gross Price = Net Price × (1 + (Tax Rate / 100))To extract tax (reverse VAT), the net price is calculated as Gross Price / (1 + (Tax Rate / 100)), and the tax amount is the difference between gross and net.
Examples
Adding Sales Tax (Exclusive)
Base Price: $100, Tax Rate: 8.25%
Result: Tax amount of $8.25, total gross price of $108.25.
Extracting Tax (Inclusive)
Total Price: $120, Tax Rate: 20%
Result: Net price of $100, tax amount of $20.
FAQ
What is the difference between tax inclusive and tax exclusive?
Tax exclusive means the listed price does not include tax; tax is added on top. Tax inclusive means the listed price already includes the tax; the tax value must be backed out to find the pre-tax base price.
How do I perform a reverse VAT calculation?
To back out VAT, divide the total price by 1 plus the tax rate (as a decimal). For example, with a 20% VAT rate, divide the total by 1.20 to get the net price, then subtract the net from the total to get the VAT amount.
Can I enter decimal tax rates?
Yes. You can enter precise decimal tax rates (like 8.25% or 7.75%) and the calculator will evaluate the exact currency amounts.
Important Note
Results are estimates for planning and education. They do not replace financial, tax, legal, or professional advice. Review assumptions before making decisions.