Tax Provision Calculator

This calculator splits an ASC 740-style income tax provision into its current and deferred components. Taxable income adds permanent and temporary differences to pre-tax book income (line 16); Current Tax Expense applies the simple sum of federal and state rates to that taxable income (line 17-19); Deferred Tax applies a combined rate to temporary differences alone, where the combined rate accounts for state tax being deductible against federal taxable income (line 12-13, 22) -- a smaller effective combined rate than the plain sum used for current tax. Total Tax Provision is current tax minus deferred tax (line 25).

Pre-tax income has the largest effect on Total Tax Provision and Current Tax Expense, since it's the biggest driver of taxable income; federal rate has the largest effect on Effective Tax Rate, since it's the larger of the two rate inputs; and temporary differences alone drive Deferred Tax, since pre-tax income never enters that calculation. Quarter is used only to show a proportional Quarterly Provision (Total Tax Provision times quarter/4) and how many quarters remain (4 minus quarter) -- it never changes Total Tax Provision, Current Tax Expense, Deferred Tax, or Effective Tax Rate themselves, since Pre-Tax Income (YTD) is already treated as a full-period figure rather than being scaled by quarter. Projected Annual Tax always equals Total Tax Provision exactly, regardless of which quarter you select, since the quarter/4 scaling used to compute Quarterly Provision is exactly undone when projecting back to an annual figure.