How to Calculate Sales Tax or VAT

To add sales tax or VAT, multiply the price by the tax rate divided by 100, then add it to the price. For a 10% tax on $50, that is $50 + ($50 × 0.10) = $55.

Adding tax

• Tax amount = price × (rate ÷ 100)
• Total = price + tax, or simply price × (1 + rate ÷ 100)

So a 20% VAT on €80 is €80 × 1.20 = €96.

Removing tax (finding the pre-tax price)

If a price already includes tax, divide by (1 + rate ÷ 100) to get the net amount. A €96 price including 20% VAT is €96 ÷ 1.20 = €80 before tax, so the tax portion is €16.

Sales tax vs VAT

Both are a percentage added to a sale. US sales tax is usually shown separately at checkout, while VAT (used across Europe and many countries) is often already included in the displayed price.

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Add or remove any tax rate with the percentage calculator, all in your browser. Related: How to calculate a discount.