Result
Tax burden
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This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.
How it is calculated
Tax burden = taxes paid ÷ revenue × 100%. This is one of the key metrics tax authorities in various countries use to compare companies within an industry — a noticeable drop below the industry average often draws extra scrutiny.
The average tax burden level varies a lot by industry: high-turnover, low-margin retail typically runs lower than high-value-added services — so it makes sense to compare against your own industry's figures rather than an abstract economy-wide average.
The metric measures burden against revenue, not profit — a low-margin company can show a high tax burden on revenue simply because the denominator (revenue) is large relative to what's actually left as profit.