Free Sales Tax / VAT Calculator

Add tax to a price or pull it out of one, in seconds. No signup required. Choose your direction, enter the price and rate, and Encarmo shows the tax amount and total instantly.

Free forever·No signup required·Instant calculations
Calculation Direction
$
Standard US retail or wholesale net
%

Tax Breakdown

Price + Tax = Total

Total Price (With Tax)$86.40Includes $6.40 tax (8%)
Price before tax (net)$80.00
Tax amount (8%)+$6.40
Final total price$86.40
Automate tax line items in invoicesEncarmo Invoicing applies compliant multi-rate sales tax, VAT, and GST in any currency.Start free invoicing →
Step by step

How to calculate sales tax or VAT in 5 steps

1

Choose your calculation direction

Adding tax to a price, common for US sales tax, or extracting tax from a tax-inclusive price, common for VAT.

2

Enter the price

The amount before tax if adding, or the total amount if extracting.

3

Enter the tax rate

The applicable sales tax or VAT rate for your state, country, or transaction type.

4

Review the breakdown

Encarmo shows the tax amount separately from the price.

5

Use the total for invoicing

Apply the calculated total to a quote, invoice, or receipt.

The basics

What is sales tax vs. VAT?

Sales tax and VAT are both consumption taxes added to the price of goods and services, but they work differently. Sales tax, used mainly in the US, is typically added once, at the final sale to the end customer, and shown separately from the listed price. VAT, used in the UK, EU, and many other countries, is collected at each stage of production and distribution, and is usually already included in the displayed price.

Adding tax: Total = Price × (1 + Tax Rate)
Extracting tax: Price = Total ÷ (1 + Tax Rate)
The structure

The two ways tax shows up in a price

Tax-exclusive (add-on) — Tax comes after

The listed price does not include tax; it is calculated and added at checkout. Standard for US sales tax.

Tax-inclusive (built-in) — Tax is already there

The listed price already includes tax, so the tax amount has to be pulled out, not added. Standard for VAT-priced goods in most VAT countries.

Tax rate — Set locally

Determined by the relevant government or jurisdiction, and varies by location, product type, and whether the sale is B2B or B2C.

Worked example

Worked example: a simple tax calculation in both directions

Illustrative 8% US sales tax vs 20% European VAT comparison

1. Adding Tax: Net Price$80.00
Tax rate8%
Tax amount$80.00 × 8% = $6.40
Total price with tax$80.00 + $6.40 = $86.40
2. Extracting Tax: Gross Price$120.00
VAT rate20%
Price before tax (net)$120.00 ÷ 1.20 = $100.00
Extracted VAT amount$120.00 - $100.00 = $20.00

In tax-exclusive pricing, tax is an addition on top of net value. In tax-inclusive pricing, tax is backed out of the gross sticker total.

Comparison guide

Tax-inclusive vs. tax-exclusive pricing: what's the difference?

Tax-Exclusive PricingTax-Inclusive Pricing
ShowsPrice before tax is addedPrice with tax already built in
Common inUnited States sales taxVAT and GST countries (UK, EU, Australia)
Calculation neededAdd tax to reach the totalExtract tax from the total
Customer seesThe tax line separately at checkoutOne final price, tax already included
Strategic impact

Why accurate sales tax and VAT calculation matters

Accurate invoicing

Getting the tax direction and rate right on every invoice avoids overcharging or undercharging a customer.

Cross-border selling

Businesses selling into VAT countries need to know whether their listed price already includes VAT or needs it added, which changes by market.

Quoting and pricing

Quickly checking the tax-inclusive total on a quote avoids a surprise for the client when the final invoice arrives.

Bookkeeping accuracy

Separating the tax portion from the price portion of a sale keeps revenue and tax liability recorded correctly.

Why Encarmo

Why use Encarmo's free sales tax and VAT calculator

Completely free, no limits

Run unlimited calculations with no paywall or watermark.

No signup required

Get the number instantly as a guest without creating an account.

Works both directions

Add tax or extract tax effortlessly in the exact same tool.

Any rate, any currency

Not restricted to one country, currency, or state jurisdiction.

Clean, downloadable summary

Download the breakdown for a quote, bill, or invoice verification.

Common questions

Questions people ask us

Clear, direct answers on methodology, formulas, and usage.

Is this sales tax and VAT calculator really free?
Yes. Run unlimited calculations with no signup and no cost.
What's the difference between sales tax and VAT?
Sales tax, used mainly in the US, is added once at the final sale to the end customer and shown separately. VAT, used in the UK, EU, and elsewhere, is collected at each stage of production and is usually already included in the displayed price.
How do I know if a price already includes tax?
Check the pricing convention in the country or market you're selling in. Most VAT countries display tax-inclusive prices; the US typically shows tax-exclusive prices with tax added at checkout.
What tax rate should I use?
Use the rate that applies to your specific state, country, product category, and customer type, since rates vary widely and this tool doesn't set the rate for you.
Does this account for multiple tax rates stacking, like state plus local sales tax?
Enter the combined rate if your jurisdiction stacks multiple taxes, since the calculator applies one rate at a time.
Can I use this for a business-to-business (B2B) VAT transaction?
The calculation itself works the same way, but whether VAT applies at all to a B2B transaction depends on the countries and VAT registration involved, which is worth checking separately.
Does this file or report tax to any authority?
No, this tool only calculates the amount. Filing and remitting sales tax or VAT still needs to happen through the relevant tax authority or your accounting software.
What if my tax rate changes partway through the year?
Recalculate using the new rate from the date it takes effect. This tool always uses the rate entered for that specific calculation.
Do I need accounting software to track this across many sales?
No, this calculator works for a one-time or per-invoice check. Encarmo Accounting is useful for tracking tax collected across every sale automatically, and it's free forever with no card required.
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