What does this tax calculator do?
This tax calculator multiplies an income by a single tax rate that you choose, then shows the estimated tax and the income left after tax. It doesn't contain any country's brackets or allowances, so it works anywhere. The accuracy of the answer depends entirely on choosing the right rate, which is what most of this page is about.
The formula is as simple as it gets:
- Estimated tax = income × rate ÷ 100
- Net income = income − estimated tax
Income can be any non-negative amount and the rate must be between 0 and 100. Both results are rounded to two decimal places.
Worked example
- Enter an income of 50,000.
- Enter a tax rate of 22.
- Estimated tax = 50,000 × 22 ÷ 100 = 11,000.00.
- Net income = 50,000 − 11,000 = 39,000.00.
Why the rate you choose matters
Most income tax systems are progressive: income is split into bands, and each band is taxed at its own rate. The rate on your highest band is your marginal rate. Your effective rate is the tax you actually pay divided by your whole income, and it's lower than the marginal rate because the lower bands are taxed less.
This calculator applies one rate to every unit of income, so:
- Enter your effective rate to estimate your total tax.
- Enter your marginal rate only to estimate the tax on extra income on top of what you already earn, such as a raise or a side job's profit.
An example using UK bands
HMRC's Income Tax rates page shows, for the 2026 to 2027 tax year, a £12,570 Personal Allowance taxed at 0%, then a 20% basic rate up to £50,270. Its own example: someone with £35,000 of taxable income pays 20% on £22,430 (£35,000 minus £12,570), which is £4,486.
| What you enter | Estimated tax | Net income | Accurate? |
|---|---|---|---|
| 35,000 at 20% (the marginal rate) | 7,000.00 | 28,000.00 | No, overstates by £2,514 |
| 35,000 at 12.82% (the effective rate) | 4,487.00 | 30,513.00 | Yes, within £1 of rounding |
The effective rate comes from 4,486 ÷ 35,000 × 100 = 12.82%. Both figures cover Income Tax only; National Insurance is a separate charge and isn't included.
How to find your effective rate
- Take the total income tax from your most recent tax return, assessment or year-end payslip.
- Divide it by the total income it was charged on.
- Multiply by 100 and enter that number as the rate.
If your income or circumstances have changed a lot since then, your effective rate will have changed too. A higher income pushes more of it into higher bands, which raises the effective rate.
For the United States, the IRS publishes the federal income tax rates and brackets by filing status. In the UK, HMRC offers an Income Tax estimator that does apply the real bands. Use an official tool like that when you need a figure close to your actual bill.
What this calculator leaves out
- Tax brackets, personal allowances, standard deductions and tax credits for any country.
- Social security, National Insurance, Medicare or other payroll contributions.
- State, provincial or local income taxes.
- Different treatment of capital gains, dividends or pension income.
Each of these can move the result substantially. You can approximate some of them by adjusting your inputs, for example subtracting deductions from the income before you enter it.
Related calculators
- GST/VAT calculator: add or extract sales tax from a price.
- Budget calculator: plan spending around your after-tax income.
- Percentage calculator: work out what percentage of your income went in tax.
- Retirement calculator: plan savings from your net income.
Results are estimates only. Tax rules vary by country, change from year to year and depend on your circumstances, so check the official tax authority or ask an accountant before making decisions.
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