Tax Calculator
Calculate income tax and take-home pay
The Complete Guide to Tax Calculation
Our Tax Calculator is a comprehensive tool designed to help you determine your annual tax liability. Simply enter your annual income, any additional deductions, and (optionally) a custom tax rate. If no custom rate is provided, the calculator will use progressive tax brackets to compute your tax. The tool then provides a detailed summary of your taxable income, total tax, effective tax rate, and post-tax income, along with a monthly breakdown.
How the Tax Calculator Works
Start by entering your annual income and any deductions you wish to claim. If you have a specific tax rate in mind, you can enter a custom tax rate; otherwise, the calculator uses standard progressive tax brackets. The calculator subtracts your deductions from your income to determine your taxable income, applies the relevant tax rates, and then computes your total tax liability. Finally, it calculates your effective tax rate and your post-tax income, both on an annual and monthly basis.
Taxable Income = Gross Income - Deductions
Total Tax = Taxable Income × (Tax Rate / 100)
Tax Breakdown
The calculator provides an annual summary including your gross income, deductions, total tax, and post-tax income. Additionally, a monthly breakdown divides your annual figures by 12, offering a clear view of your monthly cash flow after taxes.
Tax Calculator FAQs
What is the Tax Calculator?
The Tax Calculator is a tool that computes your annual tax liability by considering your income, deductions, and either a custom tax rate or progressive tax brackets.
How is my tax calculated?
Your tax is calculated by subtracting deductions from your gross income to obtain your taxable income, then applying the appropriate tax rate(s) to compute your total tax liability.
What does the effective tax rate mean?
The effective tax rate is the percentage of your gross income that you ultimately pay in taxes, calculated by dividing your total tax by your gross income.