How do you calculate income tax on net profit?
submitted by RAMESHWAR

clozitup

Take your net profit and find out what tax rate applies to your personal situation. Then, multiply the net profit by that rate. For example, if your net profit is $50,000 and the tax rate is 20%, your income tax would be $10,000. Is this for a business or personal?

ubiquitous

Look at a tax chart to figure out your tax bracket. You'll have a different rate depending on how much you make. Let's say it's 10%. Now multiply your net profit by the 10%. Finally, you multiply the net profit by that rate. So, if you made $30,000 net profit and the tax rate is 10%, you'd owe $3,000 in taxes.

schmelly

Multiple your tax rate by your net profit. Essentially, taxable income equals net profit.