Convert price including and excluding sales tax - Online calculator

Calculate price with or without sales tax

If you want to calculate a price including or excluding sales tax based on a specific tax rate, our online converter allows you to calculate a price with or without sales tax based on the net amount. You can set the sales tax rate you want to apply.

Sales tax, how does it work?

Understanding sales tax, net amount, and gross amount, its principle and calculation

To fully understand how sales tax, net amount, and gross amount work, it is important to familiarize yourself with their principles and modes of calculation. The net amount of a product or service does not include sales tax, while the gross amount includes sales tax and any other applicable taxes. Sales tax is an indirect tax on the consumption of goods and services, and is applied in most countries around the world, but with different tax rates and calculation methods depending on national legislation. In the United States, sales tax is applied to most goods and services, but with varying tax rates depending on the state and municipality. When preparing your invoices, it is often necessary to calculate the amount of sales tax or to convert a price including sales tax to a price excluding sales tax, which can be a daunting task. Fortunately, our sales tax calculator is here to simplify your life by doing the calculations for you.

Calculate net and gross amount with sales tax online

The calculation of sales tax depends on the applicable tax rate and the net amount of the product or service. Sales tax is calculated by multiplying the net amount by the applicable sales tax rate, expressed as a percentage. The calculation formula is therefore:

Sales tax = Net amount x (Sales tax rate / 100)

The gross amount, which includes sales tax, can then be calculated by adding the calculated sales tax amount to the net amount. The calculation formula is therefore:

Gross amount = Net amount + Sales tax

Need to Know

Frequently Asked Questions

Sales tax is an indirect tax on the consumption of goods and services. It is calculated by multiplying the net amount by the applicable sales tax rate, expressed as a percentage. The formula for calculating sales tax is: Sales tax = Net amount x (Sales tax rate / 100).

The net price (exclusive of sales tax) does not include sales tax, while the gross price (inclusive of sales tax) includes sales tax and other possible taxes. The gross price is therefore higher than the net price.

To convert gross price to net price, simply divide the gross amount by (1 + sales tax rate / 100). To convert net price to gross price, multiply the net amount by (1 + sales tax rate / 100).

There are different sales tax rates in effect depending on the products and services concerned. In the United States, for example, the sales tax rate varies by state and can range from 0% to over 10%. Some products and services may be exempt from sales tax, while others may be subject to a reduced rate.

Invoicing sales tax involves meeting certain tax obligations, including the issuance of compliant invoices, the calculation and reporting of collected and deductible sales tax, and the payment of due sales tax. Tax obligations related to sales tax vary by jurisdiction in the United States.