Finance · Price and margin
Add or remove sales tax and VAT from a price
One amount and one rate. The tool either adds tax (net → gross) or extracts it (gross → net) and shows the tax slice.
Calculate
How the calculator works
A single-rate tax is a share of the net, not of the gross. To add: multiply net by (1 + rate). To extract: divide gross by that factor, then subtract. 7% of $100 net is $7, not 7% of $107.
Formula and method
gross = net × (1 + t/100)
t is the rate. At 7% the factor is 1.07.
net = gross ÷ (1 + t/100)
Use this when the shelf price already includes tax.
tax = gross − net
Tax is not t% of the gross.
One constant rate on the whole amount. US sales tax is set by state and city; this page does not look up ZIP codes. EU VAT names (TVA, IVA, MwSt) share the same formula. No margin schemes, no reverse charge, no mixed rates on one ticket.
Worked example
$100 net at 7% US-style sales tax
amount = 100, rate = 7%, add tax.
- Factor = 1.07.
- Gross = 107.
- Tax = 7.
$107 gross, of which $7 is tax.
Strip 20% EU VAT from €120
amount = 120, rate = 20%, remove tax.
- Net = 120 ÷ 1.20 = 100.
- Tax = 20.
€100 net. It is not 120 − 20% = 96.
Input notes
- Amount
- The figure you start from, in one currency, without mixing net and gross.
- Rate
- The rate that applies. Type 7.25 for a local US rate, 20 for standard French VAT, 15 for Saudi VAT.
- Direction
- Add tax if you have a net price. Remove tax if the displayed price already includes it.
Assumptions and limits
Assumptions
- A single rate on the whole amount.
- No discounts, deposits or margin VAT.
- You supply the rate; the page does not fetch a tax table.
Limits
- No multi-rate receipts.
- No reverse charge or exemptions.
- This is not tax advice.
How to read the result
The usual trap is subtracting 20% from a gross price. 20% of 120 is 24, but the VAT was only 20. Always divide by 1.20. For a quote, start from the net; the gross follows.
Common mistakes
Subtracting 20% from a gross price.
Divide by 1.20. Otherwise the net is too low.
Adding two rates (food 5% + other 20%).
Each line has its own rate; do not mix them on one amount.
Assuming a US ZIP has a single nationwide rate.
Sales tax is local. Type the combined rate that applies to the sale.
Comparison
| Rate | Tax | Gross |
|---|---|---|
| 7% (example US local) | $7 | $107 |
| 20% (France standard VAT) | $20 | $120 |
| 19% (Germany) | $19 | $119 |
| 15% (Saudi VAT) | $15 | $115 |
Related calculations
- DiscountApply one markdown: the original times (1 − p/100). Stacked percents off are not a sum: 20% then 20% leaves 64% of list, a 36% combined cut, not 40%.
- Profit marginMargin puts profit over selling price; markup puts profit over cost. With $60 cost and $100 price, margin is 40% and markup is 66.7%. You cannot swap the two percents.
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Frequently asked questions
How do I add VAT to a net price?
Multiply by 1 + rate.
At 20%, multiply net by 1.20. At 7%, by 1.07. Tax is the gap between gross and net, not a percentage of the gross.
How do I take tax out of a gross price?
Divide by 1 + rate.
Gross ÷ 1.20 gives the net at 20%. Do not subtract 20% of the gross.
Is this a ZIP-code sales tax lookup?
No.
US combined rates vary by address. Type the rate from your state or the seller. The maths is the same as VAT.
Author and update
Written by Rédaction HexaCalc (editorial team). Content last updated: August 25, 2026. No third-party medical or financial review is claimed.
This calculation uses a standard mathematical identity. See also the methodology.
Is the price discounted first?
Work out the discount, then apply tax to the reduced figure.
Discount calculatorCategory: Finance