Accounting · Free tool
Sales Tax Calculator
Invoices and receipts raise two everyday questions: what is the total once tax is added, and how much tax is hidden inside a price that already includes it? This sales tax calculator handles both with a rate you enter yourself. It is useful for bookkeepers, small business owners, and anyone checking invoices in any country.
- OutputTax, net, and total
- No sign-up
- Copy or print the result
- How it works ↓
Your entries stay in this browser. Use Fill example to see a finished page first.
What this accounting tool gives you
The result shows three figures: the tax, the net amount, and the total. When you add tax, the label reads Tax added; when you extract it, Tax inside the amount. The numbers drop straight into an invoice or an expense entry. This is orientation, not tax advice.
What you enter
- Currency: USD by default, or EUR or GBP (only changes how amounts are formatted)
- Calculation: Add the tax on top, or Extract tax from a tax-inclusive amount
- Amount: the net amount (when adding) or the tax-inclusive amount (when extracting), zero or more
- Tax rate, %: the rate that applies, from 0 to 100; the tool does not assume a country
Worked example
The tool's example adds tax to $250 at a 20% rate: tax is $50 and the total is $300. Switch the mode to Extract with the same $250 and 20%, and the tool treats $250 as tax-inclusive. The net is $250 ÷ 1.20 = $208.33 and the tax inside it is $41.67. Taking 20% of $250 instead would wrongly give $50.
How is sales tax added or extracted?
Add mode: tax = amount × rate, and total = amount + tax; the amount you typed is the net. Extract mode: net = amount ÷ (1 + rate), and tax = amount − net; the amount you typed is the total.
Each figure is rounded to the cent. The tool does not look up a national, state, or local rate and applies no exemptions or thresholds; it uses exactly the rate you enter. The same arithmetic works for VAT or GST. It is not tax advice, so confirm the correct rate and treatment for your transaction.
Tips before you use the result
- To find tax inside a total, never multiply the total by the rate; divide by one plus the rate, as Extract mode does.
- Check which rate applies to the item and location before you calculate; the tool trusts whatever rate you type.
- When reconciling receipts, use Extract mode to split each tax-inclusive total into the net expense and the recoverable tax.
- Small differences from an invoice usually come from rounding per line versus on the total; compare how the supplier rounded.
Frequently asked questions
How do I calculate sales tax from a total amount?
Divide the total by one plus the tax rate to find the net, then subtract the net from the total to find the tax. For a $250 total at 20%, the net is $250 ÷ 1.20 = $208.33 and the tax is $41.67. Choose Extract in this calculator and it does the steps for you.
Why is extracting 20% not the same as taking 20% of the total?
Because the tax was calculated on the net amount, not on the total. Taking 20% of a tax-inclusive $250 gives $50, but that overstates the tax. The correct tax inside $250 at 20% is $41.67, since $208.33 plus 20% equals $250.
Does the calculator know my local sales tax or VAT rate?
No. You type the rate, and the tool applies exactly that figure. It does not look up rates by country, state, or city, and it does not handle exemptions or reduced rates. Use it as a quick orientation, not tax advice, and confirm the rate with your tax authority or advisor.
Is my invoice data sent anywhere?
No. The amount, rate, and mode are remembered by this browser alone, using local storage, and the calculator has no sign-up. Your figures stay on the device you typed them on until you clear them with the Clear button or through your browser settings.
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