Sales Tax Calculator
Add sales tax to a price, or work backwards to find the tax already included in a total.
Mode
%
100
8.25
108.25
Formula
Examples
| Input | Result |
|---|---|
| Add 8.25% to $100 | Tax = $8.25, total = $108.25 |
| Extract 8.25% from $108.25 | Net = $100.00, tax = $8.25 |
About this calculator
Sales tax is a percentage added to the price of goods and services at the point of sale. In "Add tax" mode the calculator takes a pre-tax price and shows the tax amount and the final total a customer pays. In "Extract tax" mode it reverses the process to find how much of a tax-included price was the underlying net price versus the tax.
The extract mode is useful for receipts and bookkeeping where only the gross total and the rate are known. Because tax is calculated on the net amount, you cannot simply subtract the rate from the gross figure; the calculator divides by one plus the rate to recover the true pre-tax price.
Frequently asked questions
Divide the gross price by (1 + rate/100) to get the net price, then subtract that from the gross to find the tax. The extract mode does this automatically.
Sales tax is applied to the net price, not the gross total, so subtracting the rate from the gross figure overstates the net price. Dividing by one plus the rate gives the correct result.
They are similar consumption taxes but applied differently. Sales tax is charged once at the final sale, while VAT is collected at each stage of production. Use the VAT calculator for value-added tax.
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