Add or remove tax/VAT from any price. Supports all tax rates worldwide.
| Country / Region | Rate | Tax Type |
|---|---|---|
| UK | 20% | VAT |
| Germany | 19% | VAT |
| France | 20% | TVA |
| EU (avg) | 21% | VAT |
| Japan | 10% | 消費税 |
| Australia | 10% | GST |
| Canada | 5–15% | GST/HST |
| US | varies | Sales Tax |
| India | 5–28% | GST |
| China | 13% | VAT |
| Brazil | 17–25% | ICMS |
| Mexico | 16% | IVA |
Sales tax (in the US) and Value Added Tax (VAT, used throughout Europe and many other countries) are consumption taxes added to the price of goods and services. Sales tax is typically applied at the point of sale; VAT is collected at each stage of production but ultimately borne by the end consumer. Either way, the consumer pays the tax on top of (or sometimes included in) the listed price, and the merchant remits it to the tax authority.
This calculator handles common tax/VAT scenarios. Forward calculation: given a pre-tax amount and tax rate, compute the tax and gross. Reverse calculation: given a gross amount that includes tax, compute the pre-tax amount and tax separately. Both directions are common in business — invoicing systems often need to gross up a target net, while bookkeeping needs to extract the pre-tax portion of a tax-inclusive total.
Tax rates vary widely. US state and local sales tax combined ranges from 0% (some states have no sales tax) to over 10% (parts of Louisiana and Tennessee). EU VAT ranges from 17% (Luxembourg) to 27% (Hungary), with reduced rates on essentials like food and books. The calculator accepts any rate; pick the one that matches your jurisdiction.
Pricing decisions, invoice preparation, and bookkeeping all require tax-aware math. A merchant setting product prices needs to know whether the displayed price includes tax (common in EU) or excludes it (common in US). Customers comparing prices need to convert between display conventions.
Reverse calculation also matters for refunds and accounting. If a $107 receipt includes 7% sales tax, the pre-tax amount is approximately $100 — but only if you do the math correctly. Naively dividing $107 by 1.07 gives the answer; subtracting 7% of $107 does not.
Pick direction and rate, enter amount.
Forward calculation: tax = pre_tax × rate. Gross = pre_tax + tax = pre_tax × (1 + rate).
Reverse calculation: pre_tax = gross / (1 + rate). Tax = gross − pre_tax. Equivalent: tax = gross × rate / (1 + rate). The intuitive 'subtract rate% from gross' is wrong — it produces a different result because the rate is computed against pre-tax, not gross.
Floating-point math handles small amounts well. Display rounds to two decimal places for currency. Internal calculation uses full floating-point precision to avoid compounding rounding.