How this calculator works
A tax-inclusive price contains the net price plus a percentage of that net price. Dividing the total by one plus the rate recovers the net amount. Supply the applicable Canadian GST/HST rate, or a rate for another jurisdiction. This separates a price; it does not calculate input tax credits or a business's tax remittance.
Formula
Net price = G/(1+r); included tax = G × r/(1+r). G is the total including tax and r is the included rate as a fraction. Multiplying G directly by r would overstate the tax because G already includes it.
Worked example
A $113 total including 13% HST contains a $100 before-tax price and $13 tax. A $120 total including a supplied 20% VAT rate contains a $100 net price and $20 tax; 20% is an example rate, not a Canadian default.
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Frequently asked questions
Can I use this for GST or HST?
Yes. Enter the included rate that actually applies. The default is an illustrative Canadian 13% rate; it does not determine the place of supply.
Does the US have a federal VAT?
This tool makes no such assumption. For US use, it can separate a supplied sales tax that is already included in a price.
What if the price contains no tax?
Enter 0%. The net price then equals the total and the included tax is zero.