Sales Tax Calculator
Calculate sales tax in seconds. Enter a pre-tax price and a tax rate to see the total with tax, or enter a tax-inclusive price and reverse-calculate the original amount. Works for US state sales tax, UK / EU VAT and any custom rate, in any currency.
Sales Tax vs VAT — The Same Math, Different Systems
This calculator works for any consumption tax: U.S. state and local sales tax, European Value Added Tax (VAT, MwSt., TVA, IVA), Canadian GST/HST, Australian GST, Japanese consumption tax. The arithmetic is identical regardless of name:
Total = Net × (1 + rate) | Net = Total / (1 + rate)
The fundamental economic difference is collection mechanism: VAT is collected at every stage of production (with input tax credits), while U.S.-style sales tax is collected only at final sale to the consumer. The end-user pays the same total either way. Wikipedia's VAT overview covers the policy theory in detail.
Same item, different country, very different shopping experience
Imagine a $100 net-price headphone. Here's what you pay at the till:
| Location | Tax System | Sticker Price You See | Total Paid |
|---|---|---|---|
| Oregon, USA | 0% sales tax | $100 | $100 |
| California, USA | 7.25% + ~2% local | $100 | $109.25 |
| New York City | 8.875% combined | $100 | $108.88 |
| Germany | 19% VAT (inclusive) | $119 | $119.00 |
| UK | 20% VAT (inclusive) | $120 | $120.00 |
| Hungary | 27% VAT (inclusive) | $127 | $127.00 |
Two takeaways: (1) European stickers already include the tax, so what you see is what you pay. (2) Hungary has the world's highest standard VAT at 27% — useful trivia for travelers.
Why "Reverse" Tax Calculation Matters
European pricing is almost always tax-inclusive — the shelf price is what you pay. American pricing is usually pre-tax — the shelf price plus state tax is what you actually pay. If you receive a foreign invoice, an expense receipt for reimbursement, or import-export documentation, you'll often need to extract the tax portion from a tax-inclusive total. The reverse formula does exactly that.
Common Rates Around the World (2024)
| Country / Region | System | Standard Rate |
|---|---|---|
| United States | State + local sales tax | 0% – 10.25% combined |
| Germany | MwSt. (VAT) | 19% (7% reduced) |
| United Kingdom | VAT | 20% (5% / 0% reduced) |
| France | TVA | 20% (10% / 5.5% / 2.1% reduced) |
| Canada | GST + provincial PST/HST | 5% federal + 0-10% provincial |
| Australia | GST | 10% |
| Japan | Consumption tax | 10% (8% reduced) |
| Mexico | IVA | 16% |
| India | GST | 0% / 5% / 12% / 18% / 28% |
| Hungary | VAT | 27% (highest in EU) |
U.S. Sales Tax — Famously Inconsistent
The U.S. is unusual in not having a federal VAT. Each state sets its own sales tax, plus counties and cities can add local tax on top. The result: 5 states with 0% (Alaska, Delaware, Montana, New Hampshire, Oregon — "the NOMAD states") and over 11,000 distinct tax jurisdictions. The Tax Foundation's annual sales tax report tracks combined state + local rates per state.
Frequently Asked Questions
Why is my receipt total different from this calculation?
Rounding. Sales tax is calculated per line item and rounded to the nearest cent, which can produce a different total than rate × subtotal applied to the whole order. Discrepancies should be no more than a few cents.
Are tips taxed?
In most U.S. states, no — sales tax applies to the subtotal before tip. Restaurants add tax to the food cost but not to the gratuity. Some states do tax mandatory service charges; tips you decide are virtually never taxed.
Can I get a VAT refund as a tourist?
In most EU countries, yes — visitors from outside the EU can claim VAT back on goods over a minimum value (typically €50-175). You'll need to show the goods at the airport and use a service like Global Blue or Planet. Not available in the U.S. since there's no federal VAT.
Is online shopping taxed differently?
Since the 2018 South Dakota v. Wayfair Supreme Court ruling, U.S. states can require online retailers to collect sales tax even without a physical presence in the state. So almost every major online retailer now charges your local sales tax automatically.