Gross Receipts Tax Calculator

Gross receipts tax hits revenue, not profit — dangerous for low-margin businesses. Used by Ohio (CAT), Washington (B&O), New Mexico, Nevada, and a few others. This calculator computes the tax and the effective rate on top-line revenue, accounting for any exemptions or deductions.

Annual gross revenue

Gross receipts tax rate

Exemption / deduction

Gross receipts tax owed

$10,500

Taxable receipts

$1,400,000

Effective rate on gross

0.700%

How the math works

Gross receipts tax is applied to total revenue, not profit. Several states (OH CAT, WA B&O, NM, NV) use this structure. Because it's on revenue, low-margin businesses pay disproportionately more. Real estate-related businesses (property management, brokerage) may be exposed.

Some states allow deductions (rent for real estate, cost of goods for manufacturers). Others are pure gross-receipts. Always check local exemption rules — can cut effective tax by 50%+ for eligible entities.

How to Use

Enter annual gross revenue.
Enter the applicable tax rate.
Enter exemptions/deductions (state-specific).
Read tax owed and effective rate.

Frequently Asked Questions

Is rental income subject?

Depends on the state. OH CAT: rental income is subject. WA B&O: residential rental exempt, commercial taxable. Always verify with state-specific rules — this is a common disconnect for out-of-state investors.

Why state gross receipts tax?

States argue it's simpler than income tax (can't be avoided with aggressive deductions) and captures out-of-state activity. Critics: it's regressive — taxes low-margin businesses disproportionately.

Apportionment?

Multi-state businesses apportion gross receipts based on property, payroll, and sales. Real estate is typically apportioned by state location. Watch for nexus rules — owning property in a state often triggers GRT filing.