Effective Corporate Tax Rate Calculator

Your details

Pre-tax income (also called profit before tax or PBT) from the income statement. This is revenue minus all operating and non-operating expenses, excluding the income tax line.
The income tax provision shown on the income statement. It includes both the current-period tax payable and the deferred tax component.
Turn this on to enter current tax expense and deferred tax separately. The sum must equal your total income tax expense above.
Select the state where the corporation files. State corporate tax is deductible for federal purposes. Rates are the 2025 top marginal or flat rate.
Enter last year's earnings before tax to see a year-over-year ETR comparison. Leave at 0 to skip.
Enter last year's total income tax expense to see the prior-year effective tax rate.
Currency
Effective Tax RateBelow statutory rate
17%

Income tax expense divided by earnings before tax

After-Tax Income$4,150,000
Total Tax Expense$850,000
Savings vs. Statutory Rate$200,000
ETR Gap vs. Statutory-0.04%
Combined US Statutory Rate0.28%
17% %
Very low<10%Below statutory10%-18%Near statutory18%-22%Above federal22%-28%High ETR28%+

Effective tax rate: 17.00%

  • Your ETR of 17.00% is 4.00 percentage points below the 21% US federal statutory rate, which typically reflects deductions, credits, or timing differences.
  • Compared to paying the flat 21% federal rate, your company saved $200,000 in taxes this period.
  • With CA state tax (8.84%), the combined US statutory rate is 27.98%. States are generally deductible from the federal base, so the effective combined burden is less than simply adding both rates.
  • After-tax income is $4,150,000.

Next stepCompare your ETR trend over three to five fiscal years. A rising ETR may signal erosion of tax benefits; a falling one may be unsustainable. Converging toward the statutory rate in DCF terminal values is standard practice.

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