Sales tax (VAT) calculator


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How can this online VAT calculator help you?

This tool was created to help you with sales tax deductions. By filling in the form above you can:

Calculate the sales tax

Deduct the sales tax value by providing the net price and the tax rate.

Reverse the sales tax

Check the net price by providing the gross price and the tax.

Convert net to gross value

Calculate the gross selling price py providing the net price and the tax percentage.

How to use a gross to net calculator?

Using this tool is very simple - just select the value you would like to determine, fill in the form and click “Calculate” and our app will convert gross to net (or backwards) for you.

Important note! Although this tax may have different names (depending on tax jurisdiction they may be called VAT, GST or simply sales tax in the U.S), the calculations in most cases are the same. So we will use the names as synonyms, with clear distinction when any differences occur.

VAT formulas for tax calculations

Below we present equations used for a VAT computation.

Add VAT

If you wish to add VAT to a price use the formula below:

gross_price = net_price * (1+VAT)

Remove VAT

If you wish to calculate VAT backwards and remove it from a price use the following equation:

Net_price = gross_price / (1+VAT)

Deduct VAT rate

If you wish to find out what percentage tax rate was used apply the formula below:

VAT = (gross_price / net_price - 1) * 100%

What is sales tax?

Sales tax is a consumption tax applied to the price of purchased goods or services. Customer is charged indirectly at the point of finalizing the transaction.

Although sales tax definition may vary depending on the country (due to different tax jurisdictions), general rules of calculation stay the same.

Sales tax rates may vary not only between different states, but also between different product groups. So it is crucial to make sure you know the exact tax rate  applicable in your case.

U.S. sales tax

In the United States sales tax is a single stage tax, which means that tax is imposed when final retail sale takes place.

Value Added Tax (VAT)

VAT is most commonly used among European Union countries. Contrary to the U.S. tax, it is a multi-stage tax, which means that the tax is imposed every time the value of goods or services increases.

The tax value is determined at every stage according to the selling price, but the seller is allowed to deduct the previously paid VAT amount before paying tax. In practice it means that at every stage the seller pays only the VAT on the value he adds to the price of sold goods or services.

Goods and Services Tax (GST)

GST is a form of sales tax used in Canada, Greece, India, Spain, Singapore and Malaysia. Essentially it is worked out the same way the VAT is.

VAT margin

There is one less common form of sales tax - VAT margin scheme. This is a procedure when the seller derives the VAT tax amount from the gross margin rather than the selling price of the product.

This taxation form is used by companies that resell used items.

Excise tax vs Sales tax

VAT should not be confused with excise tax, which is imposed on some product categories such as fuel, tobacco, and alcohol.

Excise should be determined separately from sales tax and in practice goods that are subject to excise tariff, are subject to sales tax as well.

U.S. Local Sales Tax Table

  Tax Rate [%]
  State Local (average) Combined Max Local Tax Rate
Alabama 4.00% 5.22% 9.22% 7.50%
Alaska 0.00% 1.76% 1.76% 7.50%
Arizona 5.60% 2.80% 8.40% 5.60%
Arkansas 6.50% 3.01% 9.51% 5.13%
California 7.25% 1.43% 8.68% 2.50%
Colorado 2.90% 4.82% 7.72% 8.30%
Connecticut 6.35% 0.00% 6.35% 0.00%
Delaware 0.00% 0.00% 0.00% 0.00%
D.C. 6.00% 0.00% 6.00% 0.00%
Florida 6.00% 1.08% 7.08% 2.50%
Georgia 4.00% 3.32% 7.32% 4.90%
Hawaii 4.00% 0.44% 4.44% 0.50%
Idaho 6.00% 0.03% 6.03% 3.00%
Illinois 6.25% 2.57% 8.82% 9.75%
Indiana 7.00% 0.00% 7.00% 0.00%
Iowa 6.00% 0.94% 6.94% 1.00%
Kansas 6.50% 2.19% 8.69% 4.00%
Kentucky 6.00% 0.00% 6.00% 0.00%
Louisiana 4.45% 5.07% 9.52% 7.00%
Maine 5.50% 0.00% 5.50% 0.00%
Maryland 6.00% 0.00% 6.00% 0.00%
Massachusetts 6.25% 0.00% 6.25% 0.00%
Michigan 6.00% 0.00% 6.00% 0.00%
Minnesota 6.88% 0.59% 7.46% 2.00%
Mississippi 7.00% 0.07% 7.07% 1.00%
Missouri 4.23% 4.03% 8.25% 5.76%
Montana 0.00% 0.00% 0.00% 0.00%
Nebraska 5.50% 1.44% 6.94% 2.50%
Nevada 6.85% 1.38% 8.23% 1.53%
New Hampshire 0.00% 0.00% 0.00% 0.00%
New Jersey 6.63% -0.03% 6.60% 3.31%
New Mexico 5.13% 2.71% 7.83% 4.31%
New York 4.00% 4.52% 8.52% 4.88%
North Carolina 4.75% 2.23% 6.98% 2.75%
North Dakota 5.00% 1.96% 6.96% 3.50%
Ohio 5.75% 1.48% 7.23% 2.25%
Oklahoma 4.50% 4.45% 8.95% 7.00%
Oregon 0.00% 0.00% 0.00% 0.00%
Pennsylvania 6.00% 0.34% 6.34% 2.00%
Rhode Island 7.00% 0.00% 7.00% 0.00%
South Carolina 6.00% 1.46% 7.46% 3.00%
South Dakota 4.50% 1.90% 6.40% 4.50%
Tennessee 7.00% 2.55% 9.55% 2.75%
Texas 6.25% 1.94% 8.19% 2.00%
Utah 6.10% 1.09% 7.19% 2.95%
Vermont 6.00% 0.24% 6.24% 1.00%
Virginia 5.30% 0.43% 5.73% 0.70%
Washington 6.50% 2.73% 9.23% 4.00%
West Virginia 6.00% 0.50% 6.50% 1.00%
Wisconsin 5.00% 0.43% 5.43% 1.75%
Wyoming 4.00% 1.33% 5.33% 2.00%

 


Authors

Created by Lucas Krysiak on 2022-03-12 14:51:29 | Last review by Mike Kozminsky on 2022-03-25 15:17:01

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