How to add sales tax to a price
Multiply the price by the tax rate and add it on: Total = Price ร (1 + rate รท 100). For example, a 100 item at 17% tax becomes 100 ร 1.17 = 117, with 17 of tax.
How to remove tax from a total (reverse VAT)
If a price already includes tax and you want the original, divide by (1 + rate รท 100): Pre-tax = Total รท (1 + rate รท 100). So a 117 tax-inclusive total at 17% was 117 รท 1.17 = 100 before tax, with 17 of tax. This is handy for invoices, expense claims and checking receipts.
Sales tax tables: 5%, 6%, 7%, 8%, 10% and 20%
Tax and total price on common amounts at common rates. The arithmetic is the same in any currency โ read $ as your own.
| 5% tax on | Tax | Total |
|---|---|---|
| $10.00 | $0.50 | $10.50 |
| $20.00 | $1.00 | $21.00 |
| $50.00 | $2.50 | $52.50 |
| $100.00 | $5.00 | $105.00 |
| $150.00 | $7.50 | $157.50 |
| $200.00 | $10.00 | $210.00 |
| $500.00 | $25.00 | $525.00 |
| $1,000.00 | $50.00 | $1,050.00 |
| $5,000.00 | $250.00 | $5,250.00 |
| $20,000.00 | $1,000.00 | $21,000.00 |
| 6% tax on | Tax | Total |
|---|---|---|
| $10.00 | $0.60 | $10.60 |
| $20.00 | $1.20 | $21.20 |
| $50.00 | $3.00 | $53.00 |
| $100.00 | $6.00 | $106.00 |
| $150.00 | $9.00 | $159.00 |
| $200.00 | $12.00 | $212.00 |
| $500.00 | $30.00 | $530.00 |
| $1,000.00 | $60.00 | $1,060.00 |
| $5,000.00 | $300.00 | $5,300.00 |
| $20,000.00 | $1,200.00 | $21,200.00 |
| 7% tax on | Tax | Total |
|---|---|---|
| $10.00 | $0.70 | $10.70 |
| $20.00 | $1.40 | $21.40 |
| $50.00 | $3.50 | $53.50 |
| $100.00 | $7.00 | $107.00 |
| $150.00 | $10.50 | $160.50 |
| $200.00 | $14.00 | $214.00 |
| $500.00 | $35.00 | $535.00 |
| $1,000.00 | $70.00 | $1,070.00 |
| $5,000.00 | $350.00 | $5,350.00 |
| $20,000.00 | $1,400.00 | $21,400.00 |
| 8% tax on | Tax | Total |
|---|---|---|
| $10.00 | $0.80 | $10.80 |
| $20.00 | $1.60 | $21.60 |
| $50.00 | $4.00 | $54.00 |
| $100.00 | $8.00 | $108.00 |
| $150.00 | $12.00 | $162.00 |
| $200.00 | $16.00 | $216.00 |
| $500.00 | $40.00 | $540.00 |
| $1,000.00 | $80.00 | $1,080.00 |
| $5,000.00 | $400.00 | $5,400.00 |
| $20,000.00 | $1,600.00 | $21,600.00 |
| 10% tax on | Tax | Total |
|---|---|---|
| $10.00 | $1.00 | $11.00 |
| $20.00 | $2.00 | $22.00 |
| $50.00 | $5.00 | $55.00 |
| $100.00 | $10.00 | $110.00 |
| $150.00 | $15.00 | $165.00 |
| $200.00 | $20.00 | $220.00 |
| $500.00 | $50.00 | $550.00 |
| $1,000.00 | $100.00 | $1,100.00 |
| $5,000.00 | $500.00 | $5,500.00 |
| $20,000.00 | $2,000.00 | $22,000.00 |
| 20% tax on | Tax | Total |
|---|---|---|
| $10.00 | $2.00 | $12.00 |
| $20.00 | $4.00 | $24.00 |
| $50.00 | $10.00 | $60.00 |
| $100.00 | $20.00 | $120.00 |
| $150.00 | $30.00 | $180.00 |
| $200.00 | $40.00 | $240.00 |
| $500.00 | $100.00 | $600.00 |
| $1,000.00 | $200.00 | $1,200.00 |
| $5,000.00 | $1,000.00 | $6,000.00 |
| $20,000.00 | $4,000.00 | $24,000.00 |
Sales tax vs VAT vs GST
They're variations on the same idea โ a percentage added to goods and services. Sales tax (US) is added at the till; VAT (UK, EU, Pakistan) and GST (India, Australia, Canada) are usually built into displayed prices. Rates differ by country and item, so enter your local rate.
What is 8% sales tax on $500?
$40.00 in tax, for a total of $540.00. Multiply 500 by 0.08 for the tax, or by 1.08 for the total.
What is 6% sales tax on 20,000?
$1,200.00 in tax, making the total $21,200.00.
What is 6% sales tax on $150?
$9.00 in tax โ $159.00 in total.
How do I calculate the total price with tax?
Multiply the price by 1 plus the rate as a decimal. For 7% tax on $80: 80 ร 1.07 = $85.60. To get just the tax, multiply by the rate alone: 80 ร 0.07 = $5.60.
Is the tax on the pre-tax or post-tax price?
Always on the pre-tax price. That's why removing tax means dividing by (1 + rate), not just subtracting the percentage.
Why isn't "remove 17%" the same as subtracting 17%?
Because the 17% was added to the smaller pre-tax number. Subtracting 17% of the larger total takes off too much โ you must divide instead.