Effective Tax Rate Calculator
Your effective tax rate is the overall rate of taxation which you pay in relation to your salary or a company pays in relation to pre-tax profits. The formula for calculating effective tax rate (ETR) is simply tax amount divided by taxable income for individuals or tax expenses by the company's earnings before taxes. This is a more accurate way of measuring taxation obligation as there are differing tax systems in place in different locations. For example a tiered system in which there are thresholds for different levels of tax (such as 5% for the first $10,000 then 15% for the next $25,000) the effective tax rate will allow you to calculate the net tax owed faster and more accurately. Use the effective tax rate calculator below to calculate your ETR.
Taxation Amount:
  Taxable Income or Earnings:    
Effective Tax Rate (ETR):