Microeconomics
Tax Incidence Calculator
Estimate how a per-unit tax is divided between consumers and producers using elasticities.
Runs locally
Inputs and results stay in this browser. Currency symbols are illustrative; use any consistent currency.
Consumer burden per unit$4.00
Producer burden per unit$6.00
Consumer share40%
Formula
Consumer share = Supply elasticity ÷ (Supply elasticity + |Demand elasticity|)
How to interpret the result
The less elastic side of a market bears more of the tax burden. This simplified model assumes competitive markets and constant local elasticities.
Assumptions and limitations
This calculator is an educational estimate, not financial, investment, tax or policy advice. Use consistent units and verify material decisions against primary data and professional guidance.
Last reviewed 2026-07-14. Calculations tested 2026-07-14.