Total Tax Burden

Combine supplied tax categories into a total and effective burden.

Description

Total tax burden combines tax categories on a common income basis.

Total tax burden combines tax categories on a common income basis. Effective rate relates that sum to gross income rather than adding the category rates.1

Combine supplied tax categories into a total and effective burden.

When to use Total Tax Burden

Use this tool to combine supplied tax categories into a total and effective burden.

Choose the specific arithmetic or checklist scenario and establish its input amounts, dates, rates and criteria from the applicable records. Keep currencies, periods and jurisdictions consistent; review the tool-specific assumptions before interpreting the result.

How to use Total Tax Burden and understand its results

  1. Choose the specific arithmetic or checklist scenario and establish its input amounts, dates, rates and criteria from the applicable records. Keep currencies, periods and jurisdictions consistent; review the tool-specific assumptions before interpreting the result.
  2. Enter incomeTax, payrollTax, propertyTax, consumptionTax, grossIncome using the field table and calculation rules, then run the tool.
  3. Read totalTax, effectiveBurdenPercent, afterTaxIncome. The explanation below defines the units, signs, ordering and any flags or placeholder values.
  4. If the tool reports an input issue, correct the values and run it again. Apply the stated assumptions when interpreting a successfully returned result.
Input fieldMeaningValue type; see rules belowRequirement
incomeTaxIncome taxnumber; minimum: 0Required
payrollTaxPayroll taxnumber; minimum: 0Required
propertyTaxProperty taxnumber; minimum: 0Required
consumptionTaxConsumption taxnumber; minimum: 0Required
grossIncomeGross incomenumber; minimum: 0Required

Enter strictly positive gross income and nonnegative tax amounts in the same currency and period. Return aggregate tax, effective percentage and income minus aggregate tax.

total=incomeTax+payrollTax+consumptionTax+propertyTax; effective%=100 total/grossIncome

Units, indexing, boundary conditions and exceptional cases are defined in the calculation rules above.

Output fieldMeaningValue type
totalTaxTotal tax burdennumber; minimum: 0
effectiveBurdenPercentEffective burden (%)number; minimum: 0
afterTaxIncomeAfter-tax incomenumber
json
{
  "input": {
    "incomeTax": 100,
    "payrollTax": 50,
    "propertyTax": 25,
    "consumptionTax": 25,
    "grossIncome": 1000
  },
  "output": {
    "totalTax": 200,
    "effectiveBurdenPercent": 20,
    "afterTaxIncome": 800
  }
}

Limitations and assumptions

The income-after-tax result can be negative. Tax categories are supplied totals; no return, deduction, overlapping base or household incidence is modeled.

Numeric inputs must be finite. Follow the calculation-specific rules for overflow, underflow and exceptional cases. Missing required fields, extra fields, wrong value types and violations of the calculation rules are input errors.

Alternative or Complementary methods

Use Worldwide Tax Comparison: Compare caller-parameterized citizenship- and residence-based tax scenarios. For a complementary task, use Local Income Tax Split: Calculate local income tax across caller-supplied jurisdictions and rates.

References

  1. Total Tax Burden — tool.io

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