Add or remove VAT from a price, or split annual income across progressive tax bands.
Enter either the net or the gross price — the other field and the VAT amount update automatically.
Default bands mirror UK 2024/25 income tax. Edit thresholds and rates to model any scheme.
About this calculator
VAT is added to a net price using Net × (1 + VAT Rate), or removed from a gross price using Gross ÷ (1 + VAT Rate).
The income tax calculator applies each band's rate only to the portion of income that falls within it — a progressive system where earning more never reduces your take-home pay, since higher rates only apply to the slice above each threshold.
Frequently asked questions
How do I remove VAT from a gross price?
Divide by 1 plus the VAT rate. At 20% VAT you divide the gross price by 1.2 to get the net price — subtracting 20% does not work, because the VAT was added to the smaller net figure.
Does a higher tax band apply to my whole income?
No. In a progressive system each rate applies only to the slice of income inside that band, so moving into a higher band never reduces your take-home pay — only the income above the threshold is taxed at the higher rate.