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Sales Tax Calculator: Add or Remove Tax
Enter a price and your local tax rate. Choose whether the price is before tax, to see the total at the till, or already includes tax, to find the net price and the tax inside it.
Adding tax to a price
Sales tax is a percentage of the selling price that the seller collects on behalf of the government. When the shelf price excludes tax, the amount due is found in two steps:
Tax = price × rate ÷ 100Total = price + tax = price × (1 + rate ÷ 100)
With a price of 80 and a rate of 7.5%, the tax is 80 × 0.075 = 6.00 and the total is 86.00. The second form is a shortcut: multiply the price by 1.075 and you have the total in a single step.
Taking tax out of a total
Many receipts and many countries show one tax-inclusive figure. To find what the item cost before tax you must divide, not subtract a percentage of the total:
Price before tax = total ÷ (1 + rate ÷ 100)Tax = total − price before tax
For a total of 86.00 at 7.5%, the pre-tax price is 86 ÷ 1.075 = 80.00 and the tax is 6.00. A frequent slip is to take 7.5% of 86 and subtract it. That gives 6.45 of tax and 79.55 before tax, which is wrong, because the tax was calculated on the smaller number, not on the total.
The share of a tax-inclusive total that is tax equals rate ÷ (100 + rate), so it is always smaller than the headline rate.
Where the rate comes from
This page does not contain a rate table on purpose. Rates differ between countries, states, provinces and sometimes cities, they can change, and they can differ by product type. Some places apply several layers at once, for example a national and a local rate, which you should add together before entering the combined figure. Check the current rate with the tax authority or on a recent receipt for the same kind of purchase.
The comparison table beside the result shows the same amount at rates one and two points either side of yours. Use it to see how much a rate change moves the total, or to test a rate you are unsure about.
Rounding, exemptions and limits
- Rounding. Retailers may round each line item or only the final tax total. On a long receipt the two methods can differ by a few cents.
- Exempt and zero-rated goods. Some categories, such as certain foods or medicines in some places, carry a lower rate or none. Enter the rate that applies to the specific item.
- Shipping and fees. Whether delivery charges are taxed depends on local rules. Add them to the amount only if they are taxable.
- Business purchases. Businesses registered for a value-added system may reclaim tax they pay. See the VAT calculator for the inclusive and exclusive method with three starting points.
The result is an estimate for planning and checking receipts. It is not tax advice, and the seller's invoice is the record that counts.
Worked example
A pair of shoes is priced at 80 before tax and the local sales tax rate is 7.5%. What is the total at the till?
Inputs
| What do you want to do? | Add tax to a pre-tax price |
|---|---|
| Amount | 80 |
| Tax rate | 7.5 % |
Result
Tax of 6.00 at a rate of 7.5%.
| Price before tax | 80.00 |
|---|---|
| Tax amount | 6.00 |
| Price including tax | 86.00 |
| Tax as a share of the total | 6.98% |
The same amount at nearby rates
| Rate | Before tax | Tax | Including tax |
|---|---|---|---|
| 5.50% | 80.00 | 4.40 | 84.40 |
| 6.50% | 80.00 | 5.20 | 85.20 |
| 7.50% | 80.00 | 6.00 | 86.00 |
| 8.50% | 80.00 | 6.80 | 86.80 |
| 9.50% | 80.00 | 7.60 | 87.60 |
- Displayed amounts are rounded to two decimals. A shop may round tax per line or per receipt, so the last cent can differ.
Financial disclaimer: Results are estimates for planning and education. They are not financial, tax or legal advice. Fees, taxes, rates and rules vary by lender, product and country, so confirm figures with your provider or a qualified adviser before making decisions.
Frequently asked questions
How do I calculate sales tax on a purchase?
Multiply the pre-tax price by the tax rate as a decimal to get the tax, then add it to the price. Alternatively, multiply the price by one plus the rate in one step.
How do I remove sales tax from a total?
Divide the tax-inclusive total by one plus the rate as a decimal. The difference between the total and that result is the tax.
Why is subtracting the rate from the total wrong?
Because the tax was charged on the pre-tax price, which is smaller than the total. Taking the same percentage of the larger total overstates the tax.
Do I enter the rate as a decimal?
No. Enter it as a percentage, so a value of 7.5 means 7.5% and the calculator converts it to 0.075 internally.
Which rate should I use?
Use the combined rate that applies to the item and place of sale. Rates vary by location and product and change over time, so confirm yours from an official source or a recent receipt.
Related calculators
References and sources
- OECD, Consumption Tax Trends: explains how consumption taxes such as sales tax and VAT are structured and collected. Link
- Your national or state tax authority publishes the current rates and rules that apply where you buy.