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Business Income Tax Calculator

Work out business income tax instantly with clear inputs, formula shown and shareable results.

About Business Income Tax Calculator

Business income is revenue less allowable expenses and depreciation. Depreciation is a real deduction even though no cash leaves, which is why taxable profit routinely differs from cash generated.

Formula

Business income tax

Profit = revenue - expenses - depreciation; tax = profit × rate

Worked example

With the default values below, Business Income Tax Calculator returns Tax On Business Income of $705,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Business Revenueminimum 0
9,000,000
Allowable Expensesminimum 0
6,200,000
Depreciationminimum 0
450,000
Applicable Tax Rateaccepts 0–60 %
30 %

Results

Tax On Business Income
$705,000.00
Taxable Profit
$2,350,000.00
Profit After Tax
$1,645,000.00
Tax As Share Of Revenue
7.833%

Step by step

  1. 1Values used
  2. 2Business income tax
  3. 3Tax On Business Income= 705,000.00
  4. 4Taxable Profit= 2,350,000.00
  5. 5Profit After Tax= 1,645,000.00
  6. 6Tax As Share Of Revenue= 7.833

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation or compounding frequency into account.
  • Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Tax figures are estimates based on the rates, caps and thresholds you enter. Real rules differ by jurisdiction and change every year, and personal circumstances alter the outcome. This is not tax or financial advice — confirm with a qualified adviser.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Tax figures are estimates based on the rates, caps and thresholds you enter. Real rules differ by jurisdiction and change every year, and personal circumstances alter the outcome. This is not tax or financial advice — confirm with a qualified adviser.

Frequently Asked Questions

Why does taxable profit differ from cash profit?

Depreciation, provisions and disallowed expenses all create differences between accounting, tax and cash.

Are all expenses deductible?

No. Personal expenditure, penalties and cash payments above prescribed limits are commonly disallowed.

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