How to use this tool
- Choose whether you are adding tax to a price or removing it from a total.
- Pick a preset (UK VAT, India GST or a US state) or type your own rate.
- Read the net price, tax amount and total. For GST the CGST/SGST split is shown.
Adding tax to a price
Multiply the net price by the rate and add it on. A £100 item with 20% VAT costs £120. A ₹1,000 service with 18% GST costs ₹1,180. A $50 purchase in a city with 8.875% sales tax comes to $54.44.
Removing tax from a total (reverse calculation)
A common mistake is to take 20% off a VAT-inclusive price. That gives the wrong answer. Instead, divide the total by 1 plus the rate: £120 ÷ 1.2 = £100. For 18% GST, divide by 1.18. This calculator does it for you when you choose "Remove tax".
How the three systems differ
United States
There is no national sales tax. Each state sets its own rate, and many counties and cities add more on top. Shelf prices usually exclude tax.
United Kingdom
VAT is charged at 20% standard rate, 5% reduced rate on things like home energy, and 0% on most food and children's clothes. Prices shown to consumers include VAT.
India
Since 22 September 2025, under the reform known as GST 2.0, most goods and services fall into two main slabs: 5% for essentials and 18% as the standard rate. A special 40% rate applies to luxury and "sin" goods such as tobacco, pan masala and high-end cars. The old 12% and 28% slabs were largely merged into these. A few items keep special rates, such as 3% on gold and 0.25% on rough diamonds, and many basic foods are exempt.
Within a state, GST is split equally into central GST (CGST) and state GST (SGST). For sales between states, the whole amount is charged as integrated GST (IGST). Check the GST Council notifications for the exact rate on your item.
Frequently asked questions
How do I remove VAT from a price?
Divide the VAT-inclusive price by 1 plus the VAT rate. For 20% VAT, divide by 1.2.
How is GST split into CGST and SGST?
For a sale within one state, the GST is split in half. 18% GST becomes 9% CGST plus 9% SGST.
What sales tax rate should I use in the US?
Use the combined state, county and city rate for the place of sale. Choose Custom and type it in.
Are the preset rates always current?
They reflect common standard rates. Governments change rates, so confirm the rate for your product before invoicing.
Sources and references
- GOV.UK: VAT rates
- GST Council of India: official rate decisions
- CBIC tax information portal: GST notifications
- Tax Foundation: State and local sales tax rates