Sales Tax Calculator

Formula

Worked Example

Adding 18% sales tax to a Rs. 10,000 price gives Rs. 1,800 of tax and a total of Rs. 11,800. Working backwards, a tax-inclusive price of Rs. 11,800 contains the same Rs. 1,800 of tax on a Rs. 10,000 base.

How to Interpret the Result

To remove tax from an inclusive price, divide by (1 + rate) rather than subtracting the rate. Federal sales tax on most goods has been charged at a standard 18%, with reduced and special rates for some items, while provinces set the sales tax on services.

Common Mistakes

Removing tax by taking 18% off the inclusive price (Rs. 11,800 × 18% = Rs. 2,124, which overstates the tax). Applying the goods rate to a service taxed by a province.