% Easy Calculators Hub

Tax Calculator

Works in both directions for sales tax, VAT and GST: build a price up from net, or work backwards from a tax-inclusive total. Pick a mode, enter the amount and rate, and the net, tax and gross breakdown updates instantly.

$
%
Keep net and gross labelled clearly in invoices. Most disputes about tax arithmetic are really disputes about which figure was quoted.

Plain English

How it works

Gross = Net × (1 + Rate ÷ 100)  •  Net = Gross ÷ (1 + Rate ÷ 100)
  1. Decide whether your figure already includes tax.
  2. To add tax, multiply the net amount by 1 plus the rate as a decimal.
  3. To remove tax, divide the gross amount by that same factor — do not simply subtract the percentage.
Subtracting 20% from a gross price is the classic mistake: $120 including 20% tax is $100 net, not $96.

See it in action

Worked examples

$120 including 20% VAT (remove the tax)

  1. Divide by 1 + rate: 120 ÷ 1.20 = $100.00 net
  2. Tax removed: 120 − 100.00 = $20.00

Answer: Net $100.00, VAT $20.00

Extracting the tax-exclusive price from a VAT-inclusive receipt for accounting or expense claims.

$500 item with 8% sales tax (add the tax)

  1. Tax: 500 × 8% = 500 × 0.08 = $40.00
  2. Gross: 500 + 40.00 = $540.00

Answer: Tax $40.00, gross $540.00

Building up a US sales-tax-inclusive price from a listed net price at checkout.

$1,000 purchase with 15% tax (add the tax)

  1. Tax: 1,000 × 15% = 1,000 × 0.15 = $150.00
  2. Gross: 1,000 + 150.00 = $1,150.00

Answer: Tax $150.00, gross $1,150.00

Quoting a tax-inclusive total on an invoice in a region with a 15% VAT or GST rate.

$75 meal with 10% tax (add the tax)

  1. Tax: 75 × 10% = 75 × 0.10 = $7.50
  2. Gross: 75 + 7.50 = $82.50

Answer: Tax $7.50, gross $82.50

Adding a service tax or local meal tax to a restaurant bill total.

$2,000 with 25% tax (add the tax)

  1. Tax: 2,000 × 25% = 2,000 × 0.25 = $500.00
  2. Gross: 2,000 + 500.00 = $2,500.00

Answer: Tax $500.00, gross $2,500.00

A high-rate jurisdiction invoice, or a quick sanity check on a quoted tax-inclusive figure.

Answers

Frequently asked questions

How do I remove tax from a total?

Divide the gross figure by 1 plus the tax rate as a decimal. For 20%, divide by 1.2.

What is the difference between net and gross?

Net is the price before tax. Gross is the price the customer actually pays, tax included.

Can I use this for VAT and GST?

Yes. The arithmetic is identical for any single-rate consumption tax.

Does it handle fractional rates like 8.25%?

Yes, any decimal rate works and results are shown to the cent.

Keep going

Related calculators