Calculate the combined federal and state corporate tax burden for your business. Enter your revenue, costs, and state to see your effective tax rate, total tax liability, and after-tax income.
Inputs
Total annual revenue before any deductions.
Direct costs of producing goods or services sold.
Total operating expenses (salaries, rent, marketing, etc.).
Select your state to apply the correct state corporate tax rate.
Corporate filing status. C-Corp is subject to federal corporate tax; S-Corp passes income through to shareholders.
Results
Effective Tax Rate
29.8%
How to use
Enter your total annual revenue.
Enter your cost of goods sold (COGS) and operating expenses.
Select your state from the dropdown to apply the correct state tax rate.
Choose your filing status (C-Corp or S-Corp).
Review the breakdown of federal tax, state tax, effective rate, and after-tax income.
Worked Example
A SaaS company headquartered in San Francisco has $5M in revenue, $2M COGS, and $1.5M operating expenses. Filed as a C-Corporation in California.
Calculate taxable income
$5,000,000 - $2,000,000 - $1,500,000 = $1,500,000
Federal tax at 21%
$1,500,000 x 21% = $315,000
California state tax at 8.84%
$1,500,000 x 8.84% = $132,600
Total tax liability
$315,000 + $132,600 = $447,600
Effective combined rate
$447,600 / $1,500,000 = 29.84%
Key Takeaway
The effective combined rate of 29.84% is significantly higher than the 21% federal rate alone. Comparing this against a Texas-based operation (21% effective) shows the impact of state tax on location decisions.
Guidance
The effective tax rate shows the actual percentage of taxable income paid in combined federal and state taxes. C-Corporations face a flat 21% federal rate, but state taxes can add 0-11.5% on top. States like Texas, Washington, and Ohio have no corporate income tax, making them attractive for incorporation. However, tax is only one factor in location decisions — talent availability, customer proximity, and operating costs also matter. S-Corp election passes income through to shareholders, potentially reducing the overall tax burden for smaller businesses.
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