A tax calculator estimates the amount of income tax you owe and the net income you take home after tax. By entering your gross income, applicable tax rate and any deductions, you get an instant breakdown of your tax liability and after-tax pay.

Tax calculators are particularly useful for employees planning a salary change, freelancers estimating quarterly payments, and anyone relocating to a new country who wants to compare net pay across jurisdictions.

Income tax is calculated on your taxable income , your gross earnings minus any allowable deductions. Deductions reduce the base on which tax is calculated, which is why maximising legitimate deductions is an important part of tax planning.

The effective tax rate is your actual tax as a percentage of gross income. It differs from the marginal rate, which is the rate applied to the last euro earned. Confusing these two figures is one of the most common mistakes in personal tax planning.

• When evaluating a job offer to compare net pay across salary bands
• When setting freelance or contractor day rates to ensure take-home viability
• When planning relocation to compare net pay in different countries
• When estimating quarterly tax payments as a self-employed person
• When modelling the impact of pension contributions on taxable income

Gross Income

Total earnings before any deductions or tax. This is the starting point for calculating taxable income.

Net Income

The amount you take home after tax and deductions. Also called take-home pay.

Effective Tax Rate

Total tax paid divided by gross income. This is your real tax rate, which is always lower than the headline marginal rate unless you are taxed at a single flat rate.

Deductions

Amounts subtracted from gross income before tax is calculated. Examples include pension contributions, professional expenses and personal allowances.

Marginal Rate

The tax rate applied to the last euro earned. In progressive tax systems, higher earners pay a higher marginal rate on income above each threshold.

• Confusing the marginal rate with the effective rate , your actual rate is always lower in a progressive system
• Forgetting to include employer social contributions when comparing employment costs
• Not accounting for allowances and thresholds that reduce taxable income
• Using annual figures when estimating monthly payments without dividing correctly

The salary calculator shows you net pay after all deductions in your specific country. The VAT calculator estimates the tax component of goods and services. The Netherlands Box 3 calculator covers the unique Dutch wealth tax on savings and investments.