Plan a tax set-aside for income from proposal work using rates you supply. It subtracts estimated related expenses, applies separate income-tax and business-tax percentages, accounts for money already reserved, and reports both the target reserve and any remaining gap without assuming a particular jurisdiction or tax year.
The target reserve is an earmarked cash estimate, while the additional-reserve figure accounts for what has already been set aside.
Tax rules vary. This calculator is educational and is not tax, legal, or accounting advice; confirm rates and deductions with a qualified local professional.
For $5,000 of gross income, $500 of expenses, a 22% income-tax rate, and a 15.3% other-business-tax rate, the planning base is $4,500. The target reserve is $1,678.50.
No. It is a cash-reserve estimate based only on the rates and expenses you enter.
They may apply differently in some jurisdictions; separate fields make the planning assumption visible and editable.
No. Deductibility varies by jurisdiction, business purpose, documentation, and tax year.
For a simple reserve, an estimated effective rate on this income is often easier to interpret; use professional advice for your situation.
The additional reserve displays as zero; the calculator does not treat the excess as a refund or final tax outcome.
| Variable | Meaning | Unit |
|---|---|---|
| Gross income | Expected revenue before expenses | USD |
| Related expenses | User-estimated eligible costs | USD |
| Income tax rate | User-supplied planning rate | % |
| Other business tax | User-supplied contribution/tax rate | % |