Effective Corporate Tax Rate Calculator
Calculate Effective Corporate Tax Rate of a company based on its Earnings before tax and Income tax paid using our online Effective Corporate Tax Rate Calculator. The effective tax rate is the percentage of income paid in taxes by a company.
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Solution
Effective Corporate Tax Rate Calculator Details
What is effective tax rate?
The effective tax rate is the overall tax rate paid by the company on its earned income.
How to calculate effective tax rate?
You can calculate effective tax rate by dividing the income tax paid by the earnings before taxes (EBT).
Effective Tax Rate = Income Tax paid / Earnings before Taxes
For example, if a company earned $50,000 before taxes and paid $12,000 in taxes, then the effective tax rate is equal to 12,000 ÷ 50,000. In this case, company’s effective tax rate is 24%.