Description
taxWedge = pretaxRate*taxFraction+fixedTaxPerUnit; taxedRate = pretaxRate+taxWedge.
An energy bill can combine fixed, usage-based and tax components. Applying one supplied tax fraction to an amount differs from determining a jurisdiction’s taxable base, exemptions and legally applicable charge.
taxWedge = pretaxRate*taxFraction+fixedTaxPerUnit; taxedRate = pretaxRate+taxWedge.
When to use this tool
Use Energy Tariff Tax Wedge when checking a supplied energy bill or tax-wedge arithmetic.
How to use the tool and how it works
- Enter pretaxRate, taxFraction, fixedTaxPerUnit. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read taxWedge, taxedRate. Use the output convention below.
Require nonnegative taxFraction. taxWedge = pretaxRate*taxFraction+fixedTaxPerUnit; taxedRate = pretaxRate+taxWedge. Use fraction rather than percent and one currency per energy unit.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| pretaxRate | Pretax Rate | Required. Finite number. |
| taxFraction | Nonnegative fractional tax rate, such as 0.2 for 20%. | Required. Finite number; minimum 0. |
| fixedTaxPerUnit | Fixed Tax Per Unit | Required. Finite number. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| taxWedge | Tax Wedge | Required. Finite number. |
| taxedRate | Taxed Rate | Required. Finite number. |
{
"input": {
"pretaxRate": 10,
"taxFraction": 0.2,
"fixedTaxPerUnit": 1
},
"output": {
"taxWedge": 3,
"taxedRate": 13
}
}Limitations and assumptions
- pretaxRate and fixedTaxPerUnit may be signed. This supplied tax arithmetic does not select a jurisdiction, exemption, tax base or applicable rate.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Consult the actual tariff and applicable tax treatment before interpreting a formula as a bill or amount owed.
References
Similar or alternative tools
- Electricity Bill Standing Variable Split
standing = days*standingPerDay; variable = kwh*pricePerKwh; tax = (standing+variable)*taxRate; total = standing+variable+tax.
- Energy Bill Tax Base Label
Compose an energy bill’s explicit component tax base from caller-supplied inclusion flags without selecting a jurisdictional tax rule.