Excise Tax Calculator
Specific and ad valorem duty, with VAT on top of both.
Rates change with budgets and local ballot measures, and the rate that applies depends on the delivery address and product category. Treat these as planning figures, not as a filing.
Tax per unit
$4.99
42% of the net price
VAT is charged on the excise as well as the goods, adding $0.43 per unit that a naive calculation misses. Specific duties also do not scale with price, so they hit cheap products hardest as a share of value.
How the Excise Tax Calculator works
Excise applies to particular categories — alcohol, tobacco, fuel, sugary drinks — on top of ordinary sales tax. Two things are routinely missed: specific duties are per unit rather than per pound, so they hit cheap products hardest; and VAT is charged on the excise as well as the goods.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
What is the difference between specific and ad valorem excise?
Specific duty is a fixed amount per unit, litre or kilogram regardless of price. Ad valorem is a percentage of value. Many regimes use both, which is why a cheap bottle and an expensive one can carry the same duty in absolute terms.
Is VAT charged on excise duty?
Yes, in almost every system. VAT applies to the price including excise, so the two compound. Calculating VAT on the pre-excise price understates the total tax, sometimes substantially.
Why do specific duties hit budget products hardest?
Because they do not scale with price. A fixed £1.20 per unit is 10% of a £12 product and 40% of a £3 one. This is deliberate in health-related excise, where the intent is to raise the floor price.
Who pays excise duty?
Usually the producer or importer at the point the goods leave a bonded warehouse, then it flows through the price. For importers this means paying it before you have sold anything, which is a real cash flow cost.