Effective Tax Rate Calculator
Find the actual percentage of your income that goes to tax.
Please note: A general estimate, not tax advice. Rates, bands, allowances and rules differ by country and change frequently. Enter the figures that apply to you and confirm with a qualified tax professional or your tax authority.
What the Effective Tax Rate Calculator does
The effective tax rate is total tax divided by total income — the honest measure of your burden. It is always below your marginal rate, because progressive systems tax your lower income bands at lower rates.
Formula
Effective rate = Total tax ÷ Gross income × 100
Inputs explained
| Input | Unit | Required | Notes |
|---|---|---|---|
| Gross income | selected currency | Yes | Accepts 0 or more. |
| Total tax paid | selected currency | Yes | Accepts 0 or more. |
| Other taxes | selected currency | Optional | Social security, state, local — anything else you want counted. Accepts 0 or more. |
| Currency | one of 10 options | Optional | — |
How to use it
- Choose Currency.
- Enter Gross income and Total tax paid.
- Optionally add Other taxes.
- Select Calculate.
Worked example
$95,000 income with $14,200 income tax and $7,268 social security.
- Income
- 95000
- Total tax
- 14200
- Other
- 7268
$21,468 combined, an effective rate of 22.6% — take-home $73,532.
Frequently asked questions
Which rate should I use for financial planning?
Marginal for decisions about earning or deducting more, since that is the rate on the next dollar. Effective for budgeting, since that is what you actually pay.
Method and sources
Method. Total tax divided by total income, which is the rate actually paid across the whole amount rather than the rate on the last unit earned.
Assumptions
- The tax figure entered is the full liability for the period, and the income figure is on the same basis — both gross, or both after the same deductions.
Limitations
- The answer is only as consistent as the two inputs. Mixing a gross income with a tax figure net of credits produces a rate that means nothing.
- An effective rate on income tax alone understates the total burden wherever social contributions or local taxes also apply.
- No rate table ships with this calculator: you supply the rates, so the result follows whichever jurisdiction and year you enter. That means it can never go silently out of date — but it also cannot warn you if the figures you entered are.
Sources
- Your own tax authority's published guidance for the relevant year — Varies by jurisdiction. What counts as taxable income and total liability where you live, which decides whether the two inputs are comparable.