Sales Tax Calculator
Estimate your business tax obligations to plan your finances and avoid surprises at tax time. This calculator helps you compute income tax, self-employment tax, and your effective tax rate based on your business income and deductions.
Enter your gross revenue, business expenses, and filing details to see an estimated tax breakdown.
- Free Online Tool
- Instant Results
- No Installation
- Secure & Private
Understanding This Calculator
Business Tax Essentials
Types of Business Taxes
- Income Tax — Tax on net business income (revenue minus deductible expenses)
- Self-Employment Tax — Social Security and Medicare taxes for self-employed individuals (15.3% on net earnings)
- Estimated Tax Payments — Quarterly tax payments required if you expect to owe $1,000+ in taxes
Key Calculations
- Taxable Income = Gross Revenue − Business Expenses − Deductions
- Effective Tax Rate = Total Tax Paid ÷ Taxable Income × 100
Common Deductible Expenses
- Office rent and utilities
- Business equipment and software
- Employee salaries and benefits
- Marketing and advertising costs
- Professional services (accounting, legal)
- Vehicle expenses for business use
How to Use
- Enter your gross business revenue.
- Enter your total business expenses and deductions.
- Select your business type (sole proprietor, LLC, corporation).
- Click Calculate to see your estimated tax liability and effective rate.
Frequently Asked Questions
What is self-employment tax?
Self-employment tax covers Social Security (12.4%) and Medicare (2.9%) taxes — totaling 15.3% on net earnings. Employees split this with their employer, but self-employed individuals pay both halves. You can deduct half of SE tax from your income tax.
When are estimated taxes due?
Quarterly estimated tax payments are due April 15, June 15, September 15, and January 15 of the following year. Missing payments can result in underpayment penalties.
What is the effective tax rate?
Your effective tax rate is the actual percentage of your income that goes to taxes, calculated by dividing total taxes paid by total taxable income. Due to progressive tax brackets, your effective rate is always lower than your marginal (highest bracket) rate.
Should I consult a tax professional?
This calculator provides estimates for planning purposes. Tax laws are complex and change frequently. For actual tax filing, especially for businesses with significant revenue, multiple income sources, or employees, consulting a CPA or tax professional is recommended.
What expenses can I deduct as a small business?
Common deductions include office space (rent or home office deduction), equipment, supplies, business travel, meals (50% deductible), health insurance premiums, retirement plan contributions, and professional development.