Effective Tax Rate Calculator

✖Tax Expense is defined as the total amount of taxes owed by an individual, corporation, or other entity to a taxing authority.ⓘ Tax Expense [TEE]			+10% -10%
✖Pre Tax Income is the remaining taxable income after adjusting earnings before interest and taxes (EBIT) for non-operating items.ⓘ Pre Tax Income [EBT]			+10% -10%

✖The Effective Tax Rate represents the percentage of a corporation’s pre-tax income that was actually paid out in the form of taxes.ⓘ Effective Tax Rate [ETR]

⎘ Copy

👎

Formula

✖

Effective Tax Rate

Formula

`"ETR" = "TEE"/"EBT"`

Example

`"10"="10000"/"1000"`

Calculator

LaTeX

Reset

👍

Effective Tax Rate Solution

STEP 0: Pre-Calculation Summary

Formula Used

Effective Tax Rate = Tax Expense/Pre Tax Income
ETR = TEE/EBT
This formula uses 3 Variables

Variables Used

Effective Tax Rate - The Effective Tax Rate represents the percentage of a corporation’s pre-tax income that was actually paid out in the form of taxes.
Tax Expense - Tax Expense is defined as the total amount of taxes owed by an individual, corporation, or other entity to a taxing authority.
Pre Tax Income - Pre Tax Income is the remaining taxable income after adjusting earnings before interest and taxes (EBIT) for non-operating items.

STEP 1: Convert Input(s) to Base Unit

Tax Expense: 10000 --> No Conversion Required
Pre Tax Income: 1000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

ETR = TEE/EBT --> 10000/1000

Evaluating ... ...

ETR = 10

STEP 3: Convert Result to Output's Unit

10 --> No Conversion Required

FINAL ANSWER

10 <-- Effective Tax Rate

(Calculation completed in 00.004 seconds)

You are here -

Home » Financial » Tax » Effective Tax Rate

Credits

Created by Kashish Arora

Satyawati College (DU), New Delhi

Kashish Arora has created this Calculator and 50+ more calculators!

Verified by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

Vishnu K has verified this Calculator and 200+ more calculators!

< 14 Tax Calculators

Taxable Income for Corporation

Go Taxable Income for Corporation = Gross Sales-Cost of Goods Sold-Operating Expense-ceil(Interest Expense)-Tax Deduction

Maximum Refund Amount

Go Maximum Refund Amount = (Turnover of Inverted Rate Supply*Net Itc/Adjusted Total Turnover)-Tax Payable on Inverted Rate Supply of Gst

Total Eligible Credit

Go Total Eligible Credit = Total Itc-(Itc for Personal Expenses+Itc for Exempted Supplies+Non Eligible Itc)

Taxable Income for Individual

Go Taxable Income for Individual = Gross Total Income-ceil(Total Exemptions)-Total Deductions

GST Excluding Amount

Go Gst Excluding Amount = floor(Gst Including Amount)/(1+Goods and Service Tax Rate/100)

Partly Exempted

Go Partly Exempted = (Exempted Turnover/Total Turnover)*Common Credit

Retail Price

Go Retail Price = round(Price/(1+Percent),2)

Goods and Service Tax

Go Goods and Service Tax = Taxable Amount*Goods and Service Tax Rate

Common Credit

Go Common Credit = Total Eligible Credit-Normal Input Tax Credit

Sales Tax Amount

Go Sales Tax Amount = Price*(Sales Tax Percentage/100)

Tax Equivalent Yield

Go Tax Equivalent Yield = Tax Free Yield/(1-Tax Rate)

Effective Tax Rate

Go Effective Tax Rate = Tax Expense/Pre Tax Income

Total Sales Tax

Go Total Sales Tax = Price+Sales Tax Amount

Net Price

Go Net Price = Cost of Product+Gst Amount

Effective Tax Rate Formula

Effective Tax Rate = Tax Expense/Pre Tax Income
ETR = TEE/EBT

What is Effective Tax Rate ?

The term effective tax rate refers to the percent of income that an individual or corporation owes/pays in taxes. The effective tax rate for individuals is the average rate at which their earned income, such as wages, and unearned income, such as stock dividends, are taxed. The effective tax rate for a corporation is the average rate at which its pre-tax profits are taxed, while the statutory tax rate is the legal percentage established by law.

How to Calculate Effective Tax Rate?

Effective Tax Rate calculator uses Effective Tax Rate = Tax Expense/Pre Tax Income to calculate the Effective Tax Rate, The Effective Tax Rate can be calculated for historical periods by dividing the taxes paid by the pre-tax income, or earnings before tax (EBT). The formula used to calculate the effective tax rate is the ratio between the taxes paid and pre-tax income (EBT). Effective Tax Rate is denoted by ETR symbol.

How to calculate Effective Tax Rate using this online calculator? To use this online calculator for Effective Tax Rate, enter Tax Expense (TEE) & Pre Tax Income (EBT) and hit the calculate button. Here is how the Effective Tax Rate calculation can be explained with given input values -> 10 = 10000/1000.

FAQ

What is Effective Tax Rate?

The Effective Tax Rate can be calculated for historical periods by dividing the taxes paid by the pre-tax income, or earnings before tax (EBT). The formula used to calculate the effective tax rate is the ratio between the taxes paid and pre-tax income (EBT) and is represented as ETR = TEE/EBT or Effective Tax Rate = Tax Expense/Pre Tax Income. Tax Expense is defined as the total amount of taxes owed by an individual, corporation, or other entity to a taxing authority & Pre Tax Income is the remaining taxable income after adjusting earnings before interest and taxes (EBIT) for non-operating items.

How to calculate Effective Tax Rate?

The Effective Tax Rate can be calculated for historical periods by dividing the taxes paid by the pre-tax income, or earnings before tax (EBT). The formula used to calculate the effective tax rate is the ratio between the taxes paid and pre-tax income (EBT) is calculated using Effective Tax Rate = Tax Expense/Pre Tax Income. To calculate Effective Tax Rate, you need Tax Expense (TEE) & Pre Tax Income (EBT). With our tool, you need to enter the respective value for Tax Expense & Pre Tax Income and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

Home

FREE PDFs

🔍 Search