R&D Tax Credit Calculator

Easily predict how much you could be eligible for with our R&D tax credit calculator. Our tax credit calculator requires just a few critical pieces of information, and you’ll get an idea of what you could get back when filing your taxes.

All you need to do is enter the number of salaried employees in your research and development department. Enter how much you spent on R&D in the past year, and our calculator will provide you with an estimated tax benefit.

Industry

State

Current number of employees involved in R&D

Current average annual wage of employees involved in R&D

Current annual expense for materials used to construct or test prototypes

Supplies include any tangible property used in R&D, i.e. prototype units (even if eventually sold), experimental fixtures and tooling, and samples used for field testing. Exclude equipment being depreciated.

Current annual expenses paid to domestic (US based) contractors to conduct research or testing

Contractors must be performing research (i.e. design, prototyping, testing, etc.) on behalf of the taxpayer, and must be paid even if the research is unsuccessful to qualify.

Federal credits may be available up to:

This tool is for general information purposes and does not take in to account the complexities of law and factual circumstances that could affect qualification for the credit. Claiming the credit requires a thorough, in-depth analysis of specific issues.

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How to Calculate the R&D Tax Credit

You may be wondering whether you should calculate R&D tax credits in-house or if it’s best to hire a professional to assist you with the credit. Before doing either, you could try an online R&D tax credit calculator to learn more about your potential benefit. Performing an R&D credit calculation is complicated, and mistakes could lead to problems with the IRS down the line. So, while an in-house resource or online R&D tax credit calculator may be a good starting point, we always recommend you work with a reputable R&D tax credit service provider. An R&D service provider will assist in determining qualified activities, the associated costs, as well as maximizing the benefit to the business as there are two methods of calculating the credit in addition to navigating the complex rules around the calculations.