Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
Estimated total tax owed
$7,770
Estimated federal UBIT (21%)
$7,770
Estimated state tax
$0
Taxable unrelated business income
$37,000
Effective tax rate on gross revenue
13.0%
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How to use this
- 1Enter gross unrelated business revenue ($).
- 2Enter directly connected expenses ($).
- 3Enter state corporate tax rate (if applicable) (%).
- 4Read your estimated total tax owed on the right — it updates as you type.
- 5Hit Share to keep the scenario or send it to someone.
About this calculator
Unrelated business income is revenue from a trade or business, regularly carried on, that isn't substantially related to your exempt purpose, think a museum gift shop selling unrelated merchandise, rental income with debt financing, or advertising revenue in your newsletter beyond simple sponsor acknowledgment. Nonprofits owe UBIT at regular corporate tax rates (a flat 21% federal rate since the 2017 tax law) on net unrelated business income over a $1,000 specific deduction, filed on Form 990-T. This calculator takes your gross unrelated business revenue and directly connected expenses, applies the $1,000 statutory deduction, and estimates the federal tax owed, while reminding you that state corporate tax may also apply and that this is a planning estimate, not a filing.
Worked example
Using the values the calculator loads with:
Inputs
- Gross unrelated business revenue: 60000 $
- Directly connected expenses: 22000 $
- State corporate tax rate (if applicable): 0 %
Results
- Estimated total tax owed: $7,770
- Estimated federal UBIT (21%): $7,770
- Estimated state tax: $0
- Taxable unrelated business income: $37,000
- Effective tax rate on gross revenue: 13.0%
What each field means
Inputs
- Gross unrelated business revenue ($)
- The gross unrelated business revenue used in the calculation, measured in $. Starts at 60000 $ so you have a working example on load.
- Directly connected expenses ($)
- The directly connected expenses used in the calculation, measured in $. Starts at 22000 $ so you have a working example on load.
- State corporate tax rate (if applicable) (%)
- The state corporate tax rate (if applicable) used in the calculation, measured in %. Starts at 0 % so you have a working example on load. Accepted range: 0–12 %.
Results
- Estimated total tax owed
- Returned as a money amount in US dollars and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Estimated federal UBIT (21%)
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Estimated state tax
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Taxable unrelated business income
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Effective tax rate on gross revenue
- Returned as a percentage. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
What activities commonly trigger UBIT?
Regularly-carried-on advertising sales (versus simple sponsor name/logo acknowledgment, which is fine), rental income from debt-financed property, sales of merchandise unrelated to your mission, and providing services to the general public in competition with for-profit businesses are the most common triggers auditors flag.
Does UBIT threaten our tax-exempt status?
Occasional or modest UBI generally doesn't jeopardize exemption, it just gets taxed like a regular business would be taxed. Exemption risk arises if unrelated activity becomes a 'substantial part' of your overall operations, which the IRS evaluates based on time, revenue, and resources devoted to it relative to your exempt mission activity.
Are there activities specifically excluded from UBIT?
Yes: volunteer-run businesses (substantially all labor is unpaid volunteer time), activities conducted primarily for member/employee convenience, selling donated merchandise, most bingo games, and qualified sponsorship payments that don't tie the sponsor's ads to your activities are all statutory exceptions.
Since 2018, can I offset one unrelated activity's loss against another's profit?
No, generally not. Post-2017 tax law requires 'siloing,' meaning you calculate UBTI separately for each unrelated trade or business and can't net a loss from one activity against income from a different, unrelated activity, which increased effective tax burden for many multi-activity nonprofits.
Accuracy and limitations
- Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
- Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
- This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.
Related tools
Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). UBIT (Unrelated Business Income Tax) Estimator. Retrieved from https://www.revenuelab.fyi/toolbox/ubit-estimate
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/ubit-estimate" target="_blank" rel="noopener">UBIT (Unrelated Business Income Tax) Estimator — RevenueLab</a> (2026).</p>
Source: [UBIT (Unrelated Business Income Tax) Estimator — RevenueLab](https://www.revenuelab.fyi/toolbox/ubit-estimate) (2026).