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Business Tax Comparison Calculator for Federal Taxes

Use a simplified version of PWBM tax module to calculate your average tax rate if you organized your business as a C-corporation or a pass-through entity.

Instructions Use the drop down menus to choose your Adjusted Gross Income (AGI) and Ordinary Business Income (OBI) brackets to compare the 2018 Average Tax Rates faced by a C-corporation (blue bar) and as a pass-through entity (red bar).

Adjusted Gross Income group

Ordinary Business Income group

Pass-through type

Industry type

Share of retained earnings


More information about the Penn Wharton Budget Model's Business Tax Calculator.
Video demonstration of how to use the Penn Wharton Budget Model's Business Tax Calculator.
Note: Information you enter will not be stored or used by Penn Wharton Budget Model or any other parties in any way. These calculations estimate how the TCJA affects typical businesses and individuals and are not meant to cover all tax situations. These calculations do not consider payroll or state and local taxes. As such, this calculator is not a tax preparation tool and it is not intended as a replacement for a full accounting of specific business and individual tax liabilities.

Description

This calculator allows for the comparison of tax rates faced by business owners for income earned as either a C-corporation, Partnership, S-corporation or Sole Proprietorship. Business owners can visualize the potential benefit to alternate taxation of their business income. While the tool itself is a simplified version of PWBM’s tax module, the rates are calculated using the full capabilities of the PWBM tax module. A fuller description of the calculations can be found here.

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