Sales Tax & VAT Calculator

Add tax to a subtotal or remove tax from a tax-inclusive total. Built for checkout math, invoices, and international VAT pricing.

Subtotal Before Tax

Sales Tax / VAT Rate %

My amount already includes tax. Remove VAT / sales tax and show the pre-tax subtotal.

Total With Tax

$108.50

Tax amount: $8.50

Subtotal$100.00

Tax amount$8.50

Final total$108.50

Tax rate8.5%

Last updated: March 2026Reviewed by CalculWise editorial team

Sources: Tax Foundation·European Commission Taxation and Customs Union

Methodology: Tax-exclusive totals are calculated by multiplying the subtotal by the tax rate. Tax-inclusive totals are reversed by dividing by 1 plus the tax rate.

Tax-exclusive vs tax-inclusive pricing

In the United States, sales tax is often added at checkout, so the sticker price and final price are different. In many VAT systems, the consumer-facing price already includes tax. That means one calculator should handle both directions: adding tax to a subtotal and removing tax from an all-in total.

Those two flows look similar but use different math. To add tax, you multiply the subtotal by the rate and add the result. To remove tax, you divide the final price by 1 plus the rate. That is the right way to isolate the pre-tax base instead of simply subtracting the percentage from the total.

Worked example

If a subtotal is $250 and the tax rate is 8.5%, the tax amount is $21.25 and the total becomes $271.25. If a price of $120 already includes 20% VAT, divide $120 by 1.20 to get a pre-tax subtotal of $100. The VAT portion is the remaining $20.

Best use cases

Check checkout totals before buying.
Back out VAT from supplier or marketplace invoices.
Model tax-inclusive price points for ecommerce or retail.
Compare how discounts and tax interact on the final bill.

Frequently Asked Questions

How do you add sales tax to a price?

Multiply the subtotal by the tax rate to get the tax amount, then add that tax to the subtotal. A $100 subtotal with 8% tax adds $8 in tax for a total of $108.

How do you remove VAT or sales tax from a total price?

Divide the tax-inclusive total by 1 plus the tax rate. If a product costs $120 including 20% VAT, the pre-tax price is $100 and the VAT portion is $20.

What is the difference between VAT and sales tax?

Sales tax is usually added at the final point of sale, while VAT is collected across the supply chain and often shown as a tax-inclusive consumer price. The math for adding or removing the tax rate is similar, but the pricing convention is different.

Can this calculator be used for tax-inclusive and tax-exclusive pricing?

Yes. Switch between before-tax and tax-included mode to either add tax to a subtotal or back out the pre-tax amount from a final price.