Finance
Sales tax & VAT calculator
Two modes: 'add tax' (US sales-tax style — net price → gross + tax shown separately) and 'extract tax' (EU VAT-included style — gross price → net + tax extracted).
Formula
US sales tax is shown on top of the listed price: a $100 item with 8% tax rings up as $108. EU VAT is usually already included in the displayed price: a €100 item at 20% VAT is €100 total (€83.33 net + €16.67 VAT). Both modes are common worldwide depending on the jurisdiction.
For 'extract tax' mode, the formula is net = gross ÷ (1 + rate/100). For example, €100 gross at 20% → net = 100/1.20 = €83.33, tax = €16.67. The intuition: gross is 120% of net when rate is 20%, so divide by 1.20.
Preset rates cover common jurisdictions: US ~5-10% (varies by state and city), Germany 19%, France 20%, UK 20% VAT, Denmark/Sweden 25%, Hungary 27% (highest VAT in the EU).
Examples
- 01$100 item + 8% sales tax (add mode)→ Net $100, tax $8, gross $108
- 02€120 receipt with 20% VAT included (extract mode)→ Net €100, VAT €20, gross €120
- 03$1500 laptop + 8.875% NYC sales tax→ Tax $133.13, total $1633.13
- 04£999 phone with 20% VAT included→ Net £832.50, VAT £166.50
FAQ
- By region. EU/UK/Japan: usually included. US/Canada: usually NOT included (added at register). Some industries flip the default — hotels and rental cars often quote net even in tax-inclusive countries.