How much tax is in my price?

Add tax to a price, or find the tax inside a price that already includes it.

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Your price

ExampleExample rate only. Rates depend on your country and business; check with your tax office or adviser.
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Tax check

Price before tax$20.00
Tax (10%)$2.00

Price with tax$22.00

How it’s calculated

Adding tax: tax = price × rate, total = price + tax. Price already includes tax: price before tax = total ÷ (1 + rate), tax = total − price before tax.

Example: $22.00 including 10% tax → $20.00 before tax.

Tax kept apart from profit

The tax you collect is kept out of your profit figures.

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Part 1Common questions

Common questions

How do I find the tax inside a price?

Divide the price by 1 plus the rate. With a 10% rate, a price of 110 is 100 before tax, so the tax is 10, not 11.

Which rate should I use?

It depends on your country, your business and what you sell. The rate here is only an example; ask your tax office or adviser for yours.

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