Business Tax Deduction Calculator
Calculate your potential tax savings from business deductions. Estimate deductible expenses, tax savings, and net taxable income for your business.
Step 1: Business Financials
Tax Deduction Formula
Tax Savings = Deductible Expenses × Tax Rate
Net Taxable Income = Revenue – Deductions
Step 2: Business Details
Common Business Deductions
• Office expenses & rent
• Utilities & internet
• Employee salaries & benefits
• Marketing & advertising
• Professional services
• Travel & meals
• Insurance premiums
Tax Deduction Results
Total Annual Tax Savings
Business Structure Comparison
| Business Type | Typical Deductions | Tax Rate | Tax Savings |
|---|
Tax Deduction Formulas
Basic Tax Calculation Formulas
Taxable Income = Gross Revenue – Allowable Deductions
Tax Liability = Taxable Income × Tax Rate
Tax Savings = Total Deductions × Tax Rate
Where:
• Gross Revenue = Total business income before expenses
• Allowable Deductions = IRS-approved business expenses
• Tax Rate = Applicable business tax percentage
Example Calculation
Example: Small Business with $100,000 Revenue
Gross Revenue: $100,000
Business Expenses: $40,000
Tax Rate: 25%
Calculation:
Taxable Income = $100,000 – $40,000 = $60,000
Tax Liability = $60,000 × 25% = $15,000
Tax Savings = $40,000 × 25% = $10,000
Without deductions: $100,000 × 25% = $25,000 tax
With deductions: $15,000 tax (saving $10,000)
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