Sales tax is a consumption tax imposed by a government on the sale of goods and services. It is typically collected by the retailer at the point of sale and passed on to the government.

How do you calculate sales tax?

To add sales tax, the formula is: Total Price = Pre-Tax Price * (1 + Tax Rate / 100). To reverse the calculation from a total price, the formula is: Pre-Tax Price = Total Price / (1 + Tax Rate / 100).

VAT stands for Value-Added Tax. It is another form of consumption tax common in many countries outside the United States. While the collection mechanism is different throughout the supply chain, from a final consumer's perspective, it functions similarly to a sales tax. This calculator can be used for VAT calculations as well.

Sales Tax Calculator (VAT Calculator)

Your Calculation Results

Pre-Tax Price

Sales Tax

Total Price

The Price on the Tag Isn't the Whole Story

Whether you're a shopper trying to budget for a purchase or a business owner creating an invoice, sales tax is an unavoidable part of the equation. That price tag you see is rarely what you'll actually pay at the register. Understanding how to quickly calculate this extra cost is essential for smart financial management.

This calculator is designed for ultimate flexibility. You can start with a **pre-tax price** and add tax to find the final cost, perfect for consumers. Or, you can do the reverse: start with a **total price** and work backward to see how much of it was tax, a crucial function for businesses that need to report the tax they've collected. It's a simple, powerful tool for everyday financial clarity.

More Tools for Business & Consumers

Discount Calculator: Calculate the final price of an item after a percentage discount.
Commission Calculator: For salespeople, calculate your earnings from a pre-tax sale amount.
Income Tax Calculator: Estimate your federal income taxes after all your earnings and sales.

Frequently Asked Questions (FAQ)

How do you calculate a reverse sales tax?

To find the original price before tax was added, you divide the total price by (1 + the tax rate as a decimal). For example, if an item cost $107 with 7% tax, you would calculate $107 / 1.07 = $100. The tax amount is then $107 - $100 = $7.

What is VAT?

VAT, or Value-Added Tax, is a type of consumption tax used in many countries around the world. For the final consumer, it works just like a sales tax, as it's included in the final price of goods and services. You can use this calculator for VAT calculations by simply entering the VAT rate in the "Sales Tax Rate" field.

Why do sales tax rates vary?

In the United States, sales tax is not set at the federal level. It is determined by state, county, and city governments. This is why the tax rate can be different from one city to the next, even within the same state. There is no single "US sales tax."