Work out discount and tax instantly with clear inputs, formula shown and shareable results.
Discount then tax is the normal order: the discount reduces the taxable amount, so a 25% discount on a 250 item cuts both the price and the VAT. Some jurisdictions tax manufacturer rebates on the full price, which is why the tax basis is selectable.
Discount and tax
net = price x (1 - discount); total = net + tax basis x tax rate
With a retailer discount, yes — tax is charged on what you actually pay. Manufacturer coupons are treated differently in some tax systems.
In the UK and EU, retail prices to consumers include VAT. In the US, sales tax is normally added at the till.