OSRS GE Tax Calculator
The Grand Exchange tax was introduced by Jagex in 2021 to remove excess gold from the economy. It applies only to the seller, never to the buyer, and it changes the maths of every flip. Here is how it works, when it matters, and when it does not.
The tax formula
Tax = min(floor(sell price × 0.02), 5,000,000)
Two percent of the sell price, rounded down to the nearest GP, capped at 5,000,000 GP per item. The buyer pays the sticker price; the seller receives the sticker price minus the tax. The tax is deducted immediately as the sale completes.
Worked examples
Small flip: 5,000 GP sell price
Tax = floor(5,000 × 0.02) = 100 GP. Seller receives 4,900 GP.
Mid-tier flip: 250,000 GP sell price
Tax = floor(250,000 × 0.02) = 5,000 GP. Seller receives 245,000 GP.
Big flip: 50,000,000 GP sell price
Tax = floor(50,000,000 × 0.02) = 1,000,000 GP. Seller receives 49,000,000 GP.
The cap kicks in: 250,000,000 GP sell price
Tax = min(5,000,000, floor(250,000,000 × 0.02)) = 5,000,000 GP. Seller receives 245,000,000 GP.
Above the cap: 800,000,000 GP sell price
Tax = 5,000,000 GP (the cap). Seller receives 795,000,000 GP. The effective tax rate here is 0.625%, not 2%. This is why the tax matters much less on very high-value flips like third-age or twisted bows than on mid-tier trades.
The 100 GP floor
Sales below a certain very small threshold are not taxed at all. The threshold has changed over time; see the official OSRS Wiki page linked at the bottom for the current number. In practice, if you are flipping actual margin-worthy items, tax applies.
Exempt items
Some items are permanently exempt from the tax. Old School Bonds are the most well-known example. Certain low-value staples are also on the exempt list. The exempt list can change if Jagex adds or removes items; the up-to-date list lives on the official OSRS Wiki GE tax page.
Why this matters for flippers
Every flip needs its margin measured after tax, not before. A 3% spread looks flippable until you notice that the tax takes 2 of those points and leaves you 1%. On the other hand, a 15M spread on a 500M-value item pays out much better than a naive 2% calculation would suggest because the tax is capped. The GE IQ flip finder applies this formula per item on every refresh so the margin you see is already net.