The FairTax Calculator

version 2.0

See how much the FairTax is an improvement over the income tax
Welcome to the FairTax Calculator! The FairTax Calculator will demonstrate the improvement of the FairTax over the income tax for your own financial situation. Once the FairTax is passed into law it will replace the entire federal income tax system with a national retail sales tax.

The green boxes are the only boxes that you enter figures in.

     

Answer these three questions first:
     
How often are you paid?
     
What is your marital status?
     
What is your family's size?

 
INCOME TAX SYSTEM
Single Pay Period                      Annual
Income
Gross pay:        
 Other income:        
Total income:        
Deductions
 Federal income tax:        
Social Security tax:        
Medicare tax:        
State income tax:        
 Medical insurances:        
Union dues:        
Charitable contributions:        
Other deductions:        
Total deductions:        
Savings deductions
401K:        
U.S. Savings bonds:        
Company stock:        
Retirement:        
Other savings deductions:        
Total savings deductions:        
 Net pay:        

How much out of your net pay do you save or invest?        

 Spendable income:        
 Hidden taxes (high estimate):        
 Hidden taxes (low estimate):        

 Tax preparation fees:        

 Last year's tax refund:        
 Last year's taxes owed:        

 

--- The bottom line ---
 Total federal taxes paid on paper:        
 Tax rate on paper:        

 Total federal taxes paid (high):        
 Total federal taxes paid (low):        

 Actual tax rate (high):        
 Actual tax rate (low):        


FAIRTAX SYSTEM
Single Pay Period                      Annual
Income
Gross pay:        
Other income:        
Total income:        
Deductions
Federal income tax: NO MORE FEDERAL WITHHOLDING!
Social Security tax: THIS IS YOUR MONEY NOW!
Medicare tax:  
State income tax:        
Medical insurances:        
Union dues:        
Charitable contributions:        
Other deductions:        
Total deductions:        
Savings deductions
401K:        
U.S. Savings bonds:        
Company stock:        
Retirement:        
Other savings deductions:        
Total savings deductions:        
Net pay:        
How much out of your net pay do you plan to save or invest?        
 Family Consumption Allowance        
 Spendable income:        
Exemptions
 Monthly education expenses        
 Monthly mortgage expenses        
 Monthly charitable expenses        
 Monthly state & local sales tax expenses        
 Monthly loan expenses        
 Monthly purchases of used items        
 Total monthly exemptions:        
 Net spendable income:        

 

--- The bottom line ---
 Total federal taxes paid (excluding the FCA):        
 Total federal taxes paid (including the FCA):        

 Tax rate (excluding the FCA):        
 Tax rate (including the FCA):        
Important considerations:
  • The FairTax Calculator demonstrates the estimated differences between the current income tax system and a FairTax (H.R. 25) system for your given financial situation.

  • Considering that hidden taxes are so deeply embedded in all American products and services, they will not disappear immediately once we transition from an income tax system to a FairTax system. It will take time to flush out these hidden costs left over from the old tax system. So it is important to understand that the results presented on this web page are meant to show the differences between an income tax system and a more established FairTax system (one that has been in place for some number of months).

  • Most of the states that have an income tax base it on the federal system. Although it is likely that these states will have to do something about their tax system once a FairTax is put in place, that issue is not addressed in this calculator, it is left as is.

  • The calculator only works with the data you provide it. If you change the amounts for non-taxable items such as a 401K, this program does not reflect the income tax effect of that change on your federal taxes in the Income Tax Section of the calculator.

  • This web page uses Javascript. It is a program that executes within your internet browser only - not from your harddrive. Nothing is written to your harddrive nor is any information transmitted across the internet to the computer that hosts this web site. The information you enter is private unless of course your computer has already been infected by a virus or a worm.
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