Add or remove 8.5% VAT from any amount instantly. Free USA VAT calculator for 2026.
USA VAT Calculator — 8.5%
Ex. VAT
$—
VAT Amount
$—
Inc. VAT
$—
Common VAT Amounts — USA 8.5%
Amount (Ex. VAT)
VAT (8.5%)
Total (Inc. VAT)
$100
+$8
$108
$500
+$42
$542
$1,000
+$85
$1,085
$2,500
+$212
$2,712
$5,000
+$425
$5,425
$10,000
+$850
$10,850
$25,000
+$2,125
$27,125
$50,000
+$4,250
$54,250
$100,000
+$8,500
$108,500
USA VAT Rate 2026
The USA has no federal sales tax. Rates are set by individual states and range from 0% (Oregon, Montana) to over 10% in combined state/local areas. The 8.5% shown is a common combined average.
To add VAT: multiply the ex-VAT amount by 1.085. For example, $1,000 × 1.085 = $1,085 including VAT.
To remove VAT: divide the VAT-inclusive amount by 1.085. For example, $1,085 ÷ 1.085 = $1,000 excluding VAT.
⚠️ Disclaimer: VAT rates and rules change. Always verify with official government sources or a tax professional before filing. Not financial or tax advice.
US sales tax has no federal rate. Rates vary by state, county, and city — averaging ~8.5% combined nationally.
As a GST-registered business, you charge sales tax on your sales and reclaim it on your business purchases. You remit the net amount to the tax authority monthly or quarterly, per state requirements. Managing this correctly is critical for business cash flow.
To add 8.5% sales tax: multiply the net price by 1.08. To extract it from a gross price: divide by 1.08. Example: a net price of $200 becomes $217 inclusive of 8.5% sales tax — the tax amount is $17.
Frequently Asked Questions
US sales tax has no federal rate. Rates vary by state, county, and city — averaging ~8.5% combined nationally.
Multiply the net (ex-tax) price by 1.08 to get the gross (inc-tax) price. To find just the tax amount, multiply by 0.085. For example: $500 net x 0.085 = $42 tax. Total = $542.
Divide the gross (inc-tax) price by 1.08 to get the net price. Example: $542 gross / 1.08 = $500 net. The tax included was $42.
US businesses must collect sales tax in any state where they have nexus. Economic nexus (e.g. $100,000 in sales or 200 transactions in a state) now applies in most states.
If you charge too little VAT, you remain liable for the correct amount — HMRC/SARS/your tax authority can assess you for underpaid VAT plus interest and penalties. If you overcharge VAT, you must remit the overcharged amount. Errors on VAT returns can be corrected on the next return if under certain thresholds, or via voluntary disclosure for larger amounts.
Yes. Sole traders are treated the same as limited companies for VAT purposes. If your turnover exceeds the registration threshold, you must register. Below the threshold, voluntary registration makes sense if your clients are VAT-registered businesses (they can reclaim the VAT you charge) and you have significant VAT-able expenses to reclaim.
