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.
Tax Breakdown
Price + Tax = Total
How to calculate sales tax or VAT in 5 steps
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.
Enter the price
The amount before tax if adding, or the total amount if extracting.
Enter the tax rate
The applicable sales tax or VAT rate for your state, country, or transaction type.
Review the breakdown
Encarmo shows the tax amount separately from the price.
Use the total for invoicing
Apply the calculated total to a quote, invoice, or receipt.
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.
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: 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 rate | 8% |
| 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 rate | 20% |
| 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.
Tax-inclusive vs. tax-exclusive pricing: what's the difference?
| Tax-Exclusive Pricing | Tax-Inclusive Pricing | |
|---|---|---|
| Shows | Price before tax is added | Price with tax already built in |
| Common in | United States sales tax | VAT and GST countries (UK, EU, Australia) |
| Calculation needed | Add tax to reach the total | Extract tax from the total |
| Customer sees | The tax line separately at checkout | One final price, tax already included |
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 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.
Questions people ask us
Clear, direct answers on methodology, formulas, and usage.
Is this sales tax and VAT calculator really free?
What's the difference between sales tax and VAT?
How do I know if a price already includes tax?
What tax rate should I use?
Does this account for multiple tax rates stacking, like state plus local sales tax?
Can I use this for a business-to-business (B2B) VAT transaction?
Does this file or report tax to any authority?
What if my tax rate changes partway through the year?
Do I need accounting software to track this across many sales?
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