This free sales tax calculator helps you quickly calculate sales tax. Perfect for freelancers, contractors, and small businesses worldwide.
Sales tax, also called consumption tax, is a tax that’s added to the sale of goods and services.
If you run a business, or you work as a freelancer or contractor, you have register for sales tax if you earn above a certain threshold.
Once you’re registered, you have to add sales tax to your invoices.
See also: What do I do about tax on my invoice?
A sales tax calculator is a tool that helps you calculate sales tax for your products or services. If you’re registered for sales tax, you have to include sales tax on your invoices, unless you sell exempt goods or services.
The calculator helps you work out the price including or excluding sales tax, and to comply with the rules and regulations in your country.
The sales tax rate varies from country to country. In these examples we’ve used a sales tax rate of 10%.
Add sales tax to the price
To figure out the total price including sales tax, simply multiply the original price by 1.1.
$100 x 1.1 = $110
Work out the amount of sales tax to add
To figure out how much sales tax you’ll be charging, simply multiply the original price by 0.1.
$100 x 0.1 = $10
Exclude sales tax from the price
If you want the price without sales tax, divide by 1.1
$110 / 1.1 = $100
Work out the sales tax amount that was added
To figure out how much sales tax was included in the price you have to divide the price by 11.
$110 / 11 = $10
To calculate how much tax is added to a price—in other words, if you want to see the price excluding sales tax—you have to divide the total amount by 1.[tax rate].
The sales tax is 5 percent: 110 / 1.05 = 104.76
The sales tax is 10 percent: 110 / 1.10 = 100
The sales tax is 15 percent: 110 / 1.15 = 95.65
The sales tax is 20 percent: 110 / 1.20 = 91.67
The sales tax is 25 percent: 110 / 1.25 = 88
If you want to know what the sales tax percentage is, you take the price including tax minus the price excluding tax, then divide by the price including tax multiplied by 100.
If the price excluding sales tax was 80 and the price including sales tax was 100, the formula would look like this:
(100-80) / 80 * 100 = 25%.
VAT and GST stand for value-added tax and goods and services tax. These are types of sales tax used in different countries.
VAT is used by most countries in the world, with the exception of Australia, Canada, India, Jersey, Malaysia, New Zealand, Samoa, and Singapore, which use GST. The US doesn’t use VAT or GST; instead they have a sales tax which varies from state to state.
The phrase sales tax and value-added tax (VAT) can be used interchangeably to mean a type of tax that’s added to the sale of goods and services. Most countries in the world use VAT, but Australia, Canada, India, Jersey, Malaysia, New Zealand, Samoa, and Singapore call this tax GST instead.
The US uses neither GST or VAT, but calls it sales tax.
The sales tax rate varies from country to country—and, in the case of the US, from state to state.
The phrase sales tax and goods and services tax (GST) can be used interchangeably to mean a type of tax that’s added to the sale of goods and services. Australia, Canada, India, Jersey, Malaysia, New Zealand, Samoa, and Singapore call this tax GST, while most countries in the world refer to it as value-added tax (VAT) instead.
The US uses neither GST or VAT, but calls it sales tax.
To work out the sales tax amount when you have the total amount including sales tax, you use this formula:
First work out what the price was without sales tax. To do that, you divide the total amount including sales tax by 1.[tax rate]. For example if the tax rate was 10%, you divide the total amount by 1.10. If the tax rate was 15%, you divide the total amount by 1.15.
Once you have the price without sales tax, simply take the price with sales tax, minus the price without sales tax. That’ll show you the sales tax amount.
You can also use the free sales tax calculator to easily work out prices with and without sales tax.
Usually, you have to register for sales tax if you earn above a certain threshold in a 12-month period. There could be some exception depending on what country you operate in, and what type of goods or services you provide.
To figure out if you have to register for sales tax—and collect sales tax from your customers–you should speak to a tax agent or an accountant.
The sales tax calculator lets you easily work out the price with and without sales tax, and the sales tax amount. Simply enter your amount and the sales tax rate, then choose whether that amount includes or excludes sales tax. You’ll instantly see the sales tax amount and the total.
You can then send invoices for free with this rate.
Sales tax is calculated using formulas that are adjusted depending on the sales tax you enter. The formulas look like this:
The amount includes sales tax
Sales tax amount is worked out with the formula: amount x 0.[tax rate], for example 0.05 for a 5% tax rate.
Total is worked out with the formula: amount x 1.[tax rate], for example 1.05 for a 5% tax rate.
The amount excludes sales tax
Sales tax amount is worked out with the formula: amount x rate / (100+rate). With an amount of 100 and 10% sales tax, this looks like 100 x 10 / (100+10) = 9.09
Total is the same as amount.
The sales tax rate varies from country to country—and, if you’re in the US, from state to state. It can also vary depending on which goods and services you’re selling, or what industry you’re operating in.
To find your tax rate, you should check with the tax authorities in your country, a tax specialist or an accountant.
See also: VAT and GST rates per country
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