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Effective Tax Rate Calculator

Calculate effective tax rate from pretax income and total taxes paid with net income summary.

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Measure your true tax burden

The effective tax rate shows what share of pretax profit goes to taxes: $\text{Effective rate} = \dfrac{\text{Tax paid}}{\text{Pretax income}} \times 100$. It is more informative than a statutory rate when credits, deductions, and mixed income streams apply.

Pair this with the EBIT Calculator for operating profit and the Book Profit Calculator when comparing take-home amounts.

Frequently Asked Questions

What is pretax income?

It is earnings before income tax expense, sometimes called profit before tax or taxable income before credits in simplified worksheets.

Can the rate exceed 100%?

Yes, if tax paid is larger than pretax income in the period (for example, due to prior-year adjustments). The calculator reports the mathematical rate.

Is this a substitute for tax advice?

No. Use it for quick planning math. Consult a qualified professional for filings and jurisdiction-specific rules.