To calculate your effective tax rate, you need two numbers: the total amount you paid in taxes and your taxable income for ...

Here’s how. How To Calculate Your Effective Tax Rate Since we follow a progressive tax system, different portions of your income are taxed at different rates.

Income tax cut This is the easiest thing to calculate. To figure out how much you would save by flattening the tax rates, you need your total taxable nonbusiness income.

What Is an Effective Tax Rate? Your effective tax rate is the percentage of your taxable income you pay in taxes – essentially an average of the various rates at which your income is taxed.