How to Calculate Sales Tax & Reverse VAT
Whether you are a freelancer calculating an invoice or a shopper verifying a receipt, understanding how to add or remove sales tax is essential. This tool helps you perform forward calculations (Net to Gross) and reverse calculations (Gross to Net) instantly.
1. Adding Tax (Net to Gross)
You have the pre-tax price and want the total.
Gross = Net × (1 + Rate)
Example: $100 Net + 20% Tax
$100 × 1.20 = $120
2. Removing Tax (Gross to Net)
You have the total price and want the pre-tax value.
Net = Gross ÷ (1 + Rate)
Example: $120 Total (incl. 20%)
$120 ÷ 1.20 = $100
Global Tax Rates Reference (2026/2026)
Sales tax names differ by region (VAT, GST, HST, Sales Tax), but the math remains the same. Below act as general reference rates (Standard) subject to change.
| Region / Country | Tax Name | Std. Rate |
|---|---|---|
| United Kingdom | VAT | 20% |
| European Union (Avg) | VAT | ~21% |
| Canada (Ontario) | HST | 13% |
| Australia | GST | 10% |
| USA (California) | Sales Tax | ~7.25% + local |
Methodology & Sources
How we calculate: This tool uses standard arithmetic precision for financial calculations. Results are rounded to two decimal places (currency standard) to avoid floating-point errors common in simpler calculators.
Sources: Tax rate references are sourced from public government data (e.g., IRS.gov, GOV.UK). Please verify with official local authorities as rates may change mid-year.