Add tax to a net price, or extract the tax already inside a gross price.
Choose a rate or type your own.
tax = net × rate ÷ 100
1,000 net at 5% → 50 tax → 1,050 gross.
You cannot simply take the percentage off a gross figure. To strip 5% tax out of 1,050, subtracting 5% gives 997.50, which is wrong. The correct formula divides:
net = gross ÷ (1 + rate ÷ 100)
1,050 ÷ 1.05 = 1,000 net, so the tax is 50. The error grows with the rate: at 20% the naive method understates the net price by 4%.
| Type | How it works | Where |
|---|---|---|
| VAT | Charged at each stage; businesses reclaim input tax so only the end consumer bears it | EU, UK, GCC, most of Africa and Latin America |
| GST | Mechanically the same as VAT, different name; India splits it into CGST/SGST/IGST | India, Australia, Canada, New Zealand, Singapore |
| Sales tax | Charged only at final sale, no input reclaim; rates stack by state and city | United States |
US sales tax is not included in the preset list because there is no national rate — the combined state and local rate varies by address, from zero in several states to over 10% in parts of Louisiana and Tennessee.
The presets are standard rates. Most countries apply reduced rates to food, medicine, books, children's clothing and transport, and zero-rate exports. India's GST runs in slabs of 0, 5, 12, 18 and 28%. Always confirm which rate applies to the specific goods or service.
Divide the gross amount by 1 plus the rate as a decimal. To remove 20% VAT, divide by 1.20. Do not subtract 20% from the gross figure — that gives the wrong answer.
Very little in mechanism. Both are value-added taxes collected in stages with input-tax recovery for businesses. The name differs by country, and India's GST is split into central and state components.
Because the US has no national rate. Sales tax is set by states, counties and cities, so the combined rate depends on the delivery address. Five states levy no state sales tax at all.
The standard rate unless your product is in a reduced, zero-rated or exempt category — commonly food, medicine, books, education and healthcare. Check your tax authority's schedule; the categories are specific and often counter-intuitive.
On the price actually charged, after discount. If you discount 1,000 to 900, tax is calculated on 900.