VAT & Sales Tax Calculator
VAT / Sales Tax Calculator
Inputs
Results
Quick Reference — Common Rates
| Rate | Tax | Total |
|---|---|---|
| 5% | $5.00 | $105.00 |
| 7% | $7.00 | $107.00 |
| 8% | $8.00 | $108.00 |
| 8.68% | $8.68 | $108.68 |
| 10% | $10.00 | $110.00 |
| 15% | $15.00 | $115.00 |
| 20% | $20.00 | $120.00 |
Based on your results — what to do next:
Estimate your total tax burden
Your 8.68% sales tax on $108.68 is just one layer — see your full income + payroll tax picture.
Factor sales tax into your budget
At 8.68%, a $1,000 purchase costs $1,086.80 out of pocket. Make sure your budget accounts for tax.
Saving for a big purchase?
Add 8.68% to your target so tax doesn't catch you short at checkout.
This sales tax calculator works in two modes: add tax to a price (enter pre-tax amount, get total) or reverse-calculate (enter a tax-inclusive total, recover the pre-tax price and tax paid). Supports US state presets, UK VAT, EU average, Canada GST, Australia GST, and any custom rate.
How Sales Tax & VAT Are Calculated
Sales tax math is straightforward addition — but the reverse calculation (removing tax from a total) trips up most people. Here are the two formulas this calculator uses.
| Variable | Meaning | Example |
|---|---|---|
| Price | Pre-tax price (what the item costs before tax) | $100.00 |
| r | Tax rate as a decimal | 0.0868 (8.68%) |
| Tax Amount | Tax owed = Price × r | $8.68 |
| Total | Tax-inclusive amount paid | $108.68 |
Worked reverse example:You see a receipt showing $54.35 after tax in New York City (8.875%). Pre-tax price = $54.35 ÷ 1.08875 = $49.92. Tax paid = $54.35 − $49.92 = $4.43. This is the “Remove Tax from Total” mode in the calculator above.
💡 Pro-Tip: Business Owners & Freelancers
Never quote prices with tax baked in unless required by law.Showing the pre-tax price gives you flexibility — customers in different states or countries pay the rate that applies to them. If you sell digital products, VAT/GST rules vary dramatically: the EU requires you to charge the buyer's country VAT rate (not yours), and the UK has similar rules post-Brexit. Use the reverse calculator to confirm how much of a customer payment was actually tax — that amount must be remitted to the tax authority, not kept as revenue.
VAT & Sales Tax FAQ
What is the average US sales tax rate in 2026?
The average combined US sales tax rate (state + local) is approximately 8.68% in 2026. State rates range from 0% (Delaware, Montana, New Hampshire, Oregon) to 7.25% base in California. Combined with local taxes, some jurisdictions exceed 10%.
What is the difference between VAT and sales tax?
Sales tax is collected only at the final point of sale — the consumer pays it and the retailer remits it to the government. VAT is collected at every stage of the supply chain, with each business reclaiming the VAT paid on its inputs. For consumers, the end cost is the same. The US uses sales tax; most of the world uses VAT.
How do you remove tax from a price that already includes it?
Divide the tax-inclusive total by (1 + tax rate). Example: $108 at 8% tax → $108 ÷ 1.08 = $100 pre-tax. Tax = $8. A common mistake is to multiply $108 × 8% = $8.64 (wrong — this overstates the tax because you're applying the rate to a total that already includes tax).
Which US states have no sales tax?
Five states have no statewide sales tax: Delaware, Montana, New Hampshire, Oregon, and Alaska. Alaska allows local jurisdictions to impose their own taxes. These states typically offset the missing revenue through higher income or property taxes.
Is there sales tax on groceries and food?
It depends on the state. As of 2026, about 13 states tax groceries at the full rate, around 6 apply a reduced rate, and the rest exempt most unprepared food. Restaurant meals are taxed in virtually every state. Always check your local rules — the variability is significant.