Our Methodology: How BizTaxWize Calculates Tax Estimates

Data Sources

Our tax estimates are calculated using publicly available data from:
- IRS: Federal tax brackets, self-employment tax rates, QBI deduction rules
- Tax Foundation: State-by-state corporate and individual income tax rates
- BLS/SBA: Industry-specific average profit margins and revenue data

Calculation Method

For each state/industry/revenue combination, we calculate: net profit (revenue x industry margin), self-employment tax, QBI deduction, federal income tax (progressive brackets), and state income tax.

Limitations

These are estimates for educational purposes. Actual taxes depend on individual circumstances, deductions, credits, filing status, and entity structure. Always consult a qualified tax professional for specific tax advice.

Updates

We update our data annually when new tax rates and brackets are published. Current data reflects 2025 tax year rates.