What This Calculator Does
This calculator tells you what percentage of your gross income actually goes toward tax. This figure is often called your effective tax rate — and it is usually lower than your marginal tax bracket because not all of your income is taxed at the top rate. It works for any currency and any country, since it relies only on the two numbers you enter.
How to Use It
Enter your total tax paid for the period (this can include income tax, and optionally other deductions you want to measure) and your gross income before any deductions. The calculator returns your tax as a percentage of income, your net income after tax, and the percentage of income you take home.
The Formula Explained
The math is a simple ratio: divide the tax you paid by your gross income, then multiply by 100 to convert it to a percentage.
$$\text{Tax \%} = \frac{\text{Tax Paid}}{\text{Gross Income}} \times 100$$
Your take-home percent is simply 100 minus your tax percent, or equivalently the net income divided by gross income times 100.
Worked Example
Suppose you earned 60,000 in gross income and paid 9,000 in tax. Your effective tax rate is $$(9{,}000 \div 60{,}000) \times 100 = 15\%$$ Your net income is \(60{,}000 - 9{,}000 = 51{,}000\), which is 85% of your gross income.
FAQ
Is this the same as my tax bracket? No. Your tax bracket (marginal rate) applies only to your top slice of income. The effective rate shown here blends all brackets and is normally lower.
What should I include in "tax paid"? Most people use total income tax. You can also include other withholdings if you want to measure your total deduction rate.
Does it work for any currency? Yes. The calculation is a pure ratio, so the result is the same percentage regardless of currency.
