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Effective Tax Rate Calculator for Businesses and Individuals

What does this come to under the current IRS rules?

Income tax expense over pre-tax income, the gap to a statutory rate, and the rate reconciliation in dollars.

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  • Nothing stored or sent
  • Free, no sign-up
Your figures
Example figuresIllustrative only. Type over them with your own.
Effective tax rate
24.00%
Tax divided by pre-tax income
Tax at the statutory rate
$21,000
Tax difference to explain
$3,000
Drawn to one scale
Tax at the statutory rate$21,000
Tax difference to explain$3,000
All results
MeasureResult
Effective tax rate24.00%
Tax at the statutory rate$21,000
Tax difference to explain$3,000
Rate difference3.00%
How this was worked out
Work shownrecomputed as you type
Effective rate = income tax expense / pre-tax income
Difference = tax expense - pre-tax income x statutory rate

Illustrative arithmetic on the figures you enter. Check the result against your firm's methodology before relying on it.

The formulas

  • Effective rate = income tax expense / pre-tax income
  • Difference = tax expense - pre-tax income x statutory rate

How it works

Tax year: Any period.

The effective tax rate is income tax expense divided by pre-tax income. Compare it with a statutory rate you enter to see the difference in rate and in dollars; the dollar difference is what a rate reconciliation has to explain through permanent items, credits, state taxes and valuation allowance changes.

For an individual, divide total tax by total income. Use the 2026 federal income tax tool for the tax on a given income.

Illustrative figures only. Check the result against your firm's methodology before relying on it.

Common questions

What is the effective tax rate?

Income tax expense divided by pre-tax income.

Why does it differ from the statutory rate?

Permanent differences, credits, state taxes and changes in valuation allowance all move it.

Is it the same as the marginal rate?

No. The marginal rate is on the next dollar of income, while the effective rate is the average.

Formulas on this page are the standard definitions.

Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.

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