Tax Percentage Calculator
Three tax calculations in one: add tax to a net amount, work backwards from a tax-inclusive total, or find the rate you were actually charged. Enter your own rate, so it works for sales tax, VAT and GST anywhere.
Enter your numbers and press Calculate — the full working appears here.
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The three tax formulas
Adding tax is a multiplication. Removing it is a division — which is where most mistakes get made.
Amount + (Amount × Rate ÷ 100)
100 + (100 × 20 ÷ 100) = 120
Adding tax to a pre-tax amount.
Total ÷ (1 + Rate ÷ 100)
120 ÷ 1.2 = 100
Removing tax from a tax-inclusive total.
((Total − Amount) ÷ Amount) × 100
((107.5 − 100) ÷ 100) × 100 = 7.5%
Finding the rate from a receipt that shows both figures.
Standard international VAT and sales tax benchmarks
Because sales tax and consumption tax rates vary across borders, here are benchmark rates commonly used around the world:
| Region | Tax System | Standard Rate | Pricing Convention |
|---|---|---|---|
| United States | State & Local Sales Tax | 4% to 10% (varies by city) | Added at register (pre-tax on shelf) |
| United Kingdom | VAT | 20% (reduced 5%) | Included on consumer price tag |
| European Union | VAT (MwSt, TVA, IVA) | 19% (DE) to 27% (HU) | Included on consumer price tag |
| Canada | GST / HST / PST | 5% to 15% | Added at register (pre-tax on shelf) |
| Australia & New Zealand | GST | 10% (AU) / 15% (NZ) | Included on consumer price tag |
| Japan | Consumption Tax | 10% (reduced 8%) | Included on consumer price tag |
Why you cannot just subtract the rate
This is the single most common tax error. A total of £120 includes 20% VAT. Taking 20% off £120 gives £96 — but the correct pre-tax figure is £100.
- The 20% was charged on £100, producing £20 of tax.
- Taking 20% off £120 removes £24 — too much, because it is 20% of the larger number.
- Dividing by 1.2 undoes the original multiplication exactly.
The gap widens as the rate rises. At 25%, subtracting gives you 6.25% less than the true pre-tax amount. The find-the-whole calculator works the same way for any percentage, not just tax.
Worked example
An invoice totals $2,706 including 8.25% sales tax. What was the amount before tax?
- Convert the rate into a multiplier.1 + (8.25 ÷ 100) = 1.0825
- Divide the total by that multiplier.2,706 ÷ 1.0825 = 2,500
- The difference is the tax.2,706 − 2,500 = 206
Answer$2,500 before tax, $206 of tax
Common uses
- Quoting a price — adding sales tax, VAT or GST to a net figure.
- Bookkeeping — separating the tax portion out of a gross receipt.
- Expense claims — reporting the pre-tax amount from a till receipt.
- Checking an invoice — confirming the rate charged matches the rate agreed.
- Comparing cross-border prices — stripping different tax regimes out before comparing.
For a price reduction rather than an addition, use the discount calculator. Note that tax is normally applied after a discount, so work the discount out first.
Frequently asked questions
How do I calculate tax percentage on a price?
How do I remove tax from a total?
How do I find out what tax rate I was charged?
Does this calculator know my local tax rate?
Does it work for VAT and GST as well as sales tax?
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