Fair Tax PLAN - H.R.25/S.122

Determine your Net Effective Sales Tax Rate (costs), after your prebate and tax free spending exemptions are considered.

All dollar amounts should be estimated on an annual basis. Input your choices in section 2 and your household's annual Fair Tax prebate will be calculated. The prebate, along with your other Fair Tax Act exemped spending amounts in sections 3-8, will be subtracted automatically from the gross income provided in section 1. Your personalized net effective sales tax rate will then be calculated.

1. List your Annual Gross Household Income: (All funds from all sources, including gross wages, cash receipts, cash from liquidated savings and investments, cash gifts or inheritance received, retirement & social security benefits, child support & public assistance received, receipt of insurance funds, annuities, trusts, and legal settlements.)

2. Select ONE or TWO Adults (as head of household), then select the total number of dependent children (under 18) living in your household. Your tax free yearly spending allotment for necessities, and your monthly sales tax "prebate" will be automatically calculated from the HHS table based on your household adult/dependent numbers only. Your income is not considered.   Adult children (18 yrs and older) and other Adult dependents within your household will receive their own Adult prebate check.   
See HHS Chart for monthly prebate details.

Monthly prebate = $0

HHS Tax Free Spending Allowance is: $0

3. List total annual amount paid out for loan payments, including both principal and interest. (include existing mortgage, auto, education loan payments and all other loan payments.)

4. List all annual cash tuition payments made for education for any age, any level, preschool through adult. Tuition ONLY is tax free.
5. List the annual amount of all funds deposited to any savings account or retirement account through a government plan, through your employer, or privately, and all funds used to purchase any stocks, bonds, business, or investment vehicle of any kind.
6. List the annual amount of all funds you have donated to any Church, profit or non profit charity or organization, or given to any individual through a gift, inheritance, donation, or court order, including child support.
7. List the estimated annual amount of all taxes paid to any State, County, City, Municipal, Township, and other local governments. Include state income and sales taxes, property taxes, school district taxes, deed transfer taxes, occupational taxes. Include both State and Local taxes paid throughout the year, through payroll deductions and estamate those paid on your own, such as sales taxes.
8. List the annual estimate of funds spent on purchases of used items (jewelry, clothes, used real estate, used cars, used furniture, antiques, etc.).

Update Calculations


The annual tax-free spending allowance for your household is:


Your household will receive a monthly tax prebate check in the amount of:


Your taxable income left to spend after deducting your tax free spending listed above in lines 2 to 8:


Your maximum annual Fair Tax dollar costs (including social security contributions) based on estimated income & spending above:


Your estimated annual net effective Fair Tax rate on the income & spending listed above:


IMPORTANT FICA KEYNOTE - The Fair Tax Act eliminates FICA Social Security taxes (7.65%) and funds Social Security and Medicare as part of the 23% inclusive sales tax revenues. When comparing your net sale tax rates above to your current income tax rates, or any estimated Flat Tax rates, remember to add your 7.65% FICA payroll taxes to your Income Tax expenses before comparing your tax rates. The proposed Flat Tax of 17% will not affect your current FICA payroll deductions, so the current Flat Tax proposal would really be a 17% + 7.65% FICA = 24.65% initial rate before deductions, clearly higher than Fair Tax's 23%. Be sure to check your paycheck stubs to see exactly what dollar amount you are paying for FICA social security and medicare through payroll tax deductions. Remember, your employer is also paying 7.65% into FICA on your behalf, money that he/she cannot give you in the form of higher wages. The Fair Tax Act, HR 25/S 25 eliminates both of these taxes.

Remember your tax numbers can change up or down depending on your own
personal spending / savings / investment/ gifting choices.

The key is YOU decide, not the government.

Fair Tax, Flat Tax, Income Tax
An Economic Comparison of Of Tax Plans

To Sign Our Online Fair Tax Act Support Petition click here.

If you like your tax numbers please contact your congress members and ask
them to support the Fair Tax Act, the simple & progressive national retails sales tax
plan for America!

Ask your legislators to push for TAX REFORM FIRST!  Remember, the Fair Tax Act IS
the ultimate Social Security Reform, allowing you to save and invest all you want
totally tax free, and without any government interference.

Calculator prepared by members of PA State Fair Tax Act Supporters of HR 25/S122 - www.pafairtax.org
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HHS Poverty Table