Effective Tax Rate Calculator

How it is calculated

The tool divides what you paid by what you earned: effective rate (%) = total_tax ÷ total_income × 100. Both values are amounts in the same currency and the same period, for example one tax year. After-tax income is simply total_income − total_tax.

Both fields are required, income must be greater than zero and tax cannot be negative; otherwise no result is shown. The tool does not work out any tax for you and applies no country's brackets, so use the tax figure from your return or payslips. Which taxes you count (income tax only, or social contributions too) changes the answer.

Common mistakes

• Entering taxable income instead of total income. The rate is measured against the figure you type, so a post-deduction number gives a higher rate than your real burden.
• Mixing periods, such as monthly tax with annual income. Both values must cover the same period.
• Reading the result as your marginal rate. The effective rate is an average; the rate on your next unit of income is usually higher.
• Counting only income tax in one year and income tax plus social contributions in another, then comparing the two rates.
• Typing the tax rate (for example 21) in the tax field instead of the amount paid.