Sales Tax Calculator
Calculate sales tax for any rate — including UK VAT (20%, 5%), US state taxes, EU VAT, GST, or any custom rate. Add tax to a pre-tax amount, or remove tax from a tax-inclusive (gross) total.
Add tax to an amount
Enter a pre-tax (net) amount and the tax rate.
Remove tax from a gross amount
Enter a tax-inclusive (gross) total to find the pre-tax amount and tax portion.
How the Sales Tax Calculator works
This calculator handles two common tax tasks: adding tax to a net price to find the gross total, and removing tax from a gross price to find the net amount. Both are everyday requirements for UK businesses, freelancers, and consumers dealing with VAT. The preset buttons provide quick access to the most common UK VAT rates — 20% standard and 5% reduced — but you can enter any custom rate.
In the UK, Value Added Tax (VAT) is the primary form of consumption tax, charged at 20% on most goods and services. Understanding how to add or strip out VAT is essential for accurate invoicing, expense claims, and price comparisons. The reverse calculation — removing VAT from a gross amount — uses the formula: Net = Gross ÷ (1 + rate), which is different from simply subtracting the percentage of the gross figure.
Frequently asked questions
What is sales tax vs VAT?
Sales tax (common in the US) is collected only at the point of final sale to the consumer and is not charged between businesses. VAT (Value Added Tax, used in the UK and EU) is charged at every stage of the supply chain, but businesses registered for VAT can reclaim the VAT they have paid on their inputs. The net effect for end consumers is similar, but VAT involves more administrative steps for businesses.
How do I add sales tax to a price?
To add tax to a net (pre-tax) price, multiply the price by the tax rate as a decimal and add it to the original price. For example, to add 20% VAT to £100: tax = £100 × 0.20 = £20, so the gross price is £120. Alternatively, multiply the net price by 1.20 directly. This calculator performs this calculation instantly for any rate.
What is the standard VAT rate in the UK?
The standard VAT rate in the UK is 20%. There is also a reduced rate of 5% that applies to certain goods and services, including domestic energy, children's car seats, and some home energy-saving materials. A zero rate (0%) applies to most food, children's clothing, books, and newspapers. Some items are exempt from VAT altogether, such as financial and insurance services, and postage stamps.
Do all goods have the same VAT rate?
No. In the UK, VAT rates vary by product category. The standard rate of 20% applies to most goods and services. The reduced rate of 5% applies to items such as domestic energy bills and children's car seats. Many essentials are zero-rated (0%), including most food, children's clothing, and books. Some services are exempt from VAT, meaning VAT is not charged and cannot be reclaimed. HMRC publishes full guidance on which rate applies to specific goods.
Related: VAT Calculator · Discount Calculator