What it does and when to use it
The calculator adds sales tax to a pre-tax price or extracts tax from a tax-inclusive total.
Use it for quotes, invoices, pricing, and before/after-tax comparisons.
How to Calculate VAT & Sales Tax — 2026 Guide
At a glance
What to enter
Enter an amount, the applicable tax rate, and whether tax is already included.
How to read the result
The result separates base price, tax amount, and final total.
Unlike many countries, the US has no federal VAT. Sales tax is set at state/local level and varies significantly.
Adding Sales Tax
Total with tax = Amount × (1 + tax rate/100)
Example: $100 × 1.08 (8% tax) = $108
Removing Sales Tax from a Total
Pre-tax amount = Total ÷ (1 + tax rate/100)
Example: $108 ÷ 1.08 = $100
Common State Rates
- No tax: Oregon, Montana, New Hampshire, Delaware, Alaska
- Low (under 5%): Hawaii, Wisconsin, Wyoming, Maine
- High (over 9%): California, Tennessee, Arkansas, Louisiana
Common mistakes
- Subtracting the rate directly from a tax-inclusive total.
- Using a rate from the wrong state or locality.
Frequently asked questions
Why not subtract the rate from the total?
The rate was applied to the pre-tax base, not the final total.
Is the rate the same everywhere?
No. Confirm the current state and local rate.
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