LIFO Tax Benefit Calculator

LIFO Tax Benefit Calculator

LIFO Tax Benefit Calculator:

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Instructions:

  • Identify the year to date & 20-year average annual historical inflation rates for your company using the tables shown below the calculator
  • Enter the following values into the blue-colored cells:
    • Prior year end inventory balance at cost
    • Current year inflation rate: Note – if you don’t have an idea on your current or historical inflation, see inflation rates in the table below & locate a BLS category that matches your primary business activity
    • 20-year average annual inflation rate: used to calculate the 20-year projected tax savings
    • Combined federal & state tax rate
  • The green-colored cells will automatically update as soon as all values have been entered into the blue-colored input cells

Note: LIFO is adopted on a prospective basis & LIFO tax savings accrue beginning in the year of the change. Prior period benefits can NOT be retrospectively recaptured. 20 year cumulative taxable income reduction & after-tax cash savings shown in calculator are for analysis purposes only & is provided to project the potential tax savings from LIFO that could occur over the next 20 years based on your current year inventory balance at cost & the historical inflation rates.

BLS PPI Annual Inflation Rate Averages Table for Selected Commodities Through April 2024

 PPI CodeBLS PPI Category Description1M 4/24YTD 4/241YR 4/243YR 4/245Y 4/2410YR 4/2420Y 4/24
01FARM PRODUCTS0.3%4.7%0.3%5.7%6.9%0.6%2.8%
011Fruits & melons, fresh/dry vegs. & nuts-6.6%-0.3%-6.6%8.6%3.6%2.8%3.8%
012Grains-0.6%-8.8%-0.6%-8.3%4.2%-1.5%2.0%
013Slaughter livestock3.8%23.5%3.8%14.3%10.1%2.4%4.1%
014Slaughter poultry2.0%3.7%2.0%9.5%7.1%1.8%3.4%
015Raw cotton-11.5%0.6%-11.5%0.5%1.8%-0.6%1.8%
016Raw milk-1.9%-2.7%-1.9%10.8%6.0%-1.7%0.9%
017Chicken eggs7.9%38.4%7.9%36.8%28.1%4.4%5.1%
018Hay, hayseeds and oilseeds0.1%-8.7%0.1%-4.3%5.0%-2.0%1.4%
02PROCESSED FOODS AND FEEDS0.0%2.4%0.0%5.3%4.8%1.9%2.8%
021Cereal and bakery products0.3%-0.4%0.3%7.8%5.1%2.8%3.2%
022Meats, poultry, and fish-0.1%8.1%-0.1%3.4%5.4%1.6%2.8%
023Dairy products-0.1%0.3%-0.1%3.8%2.9%0.1%1.7%
024Processed fruits and vegetables-0.1%-0.6%-0.1%10.1%6.7%4.2%3.9%
025Sugar and confectionery2.1%7.2%2.1%9.0%5.4%3.2%3.3%
026Beverages and beverage materials-0.1%2.7%-0.1%6.4%4.3%2.8%2.6%
027Fats and oils-0.3%-5.9%-0.3%1.3%6.3%2.0%2.8%
028Miscellaneous processed foods-0.3%1.8%-0.3%7.8%5.3%2.8%2.9%
029Prepared animal feeds-0.7%-4.3%-0.7%1.6%4.1%0.1%2.6%
03TEXTILE PRODUCTS AND APPAREL-0.2%1.4%-0.2%5.9%4.4%2.5%2.2%
031Synthetic fibers-2.9%3.8%-2.9%5.7%4.7%2.7%2.3%
032Processed yarns and threads0.1%1.1%0.1%5.0%4.6%2.2%2.5%
033Greige fabrics0.2%0.0%0.2%6.5%3.8%1.8%2.1%
034Finished fabrics0.4%0.8%0.4%6.0%4.8%2.8%2.7%
038Apparel & other fabricated textile prods0.4%1.4%0.4%5.1%3.4%2.2%1.9%
039Miscellaneous textile products/services1.4%-0.4%1.4%11.3%7.1%3.1%2.5%
04HIDES, SKINS, LEATHER, AND RELATED PRODUCTS0.0%-0.1%0.0%-2.1%0.7%-2.6%0.4%
041Hides and skins, incl. cattle-1.1%-6.5%-1.1%-20.2%-7.8%-11.8%-3.1%
042Leather-0.2%1.0%-0.2%-0.6%1.4%-3.9%-0.4%
043Footwear0.8%1.6%0.8%6.5%4.0%3.0%2.8%
044Other leather and related products0.0%0.9%0.0%4.4%2.8%2.5%2.1%
05FUELS AND RELATED PRODUCTS AND POWER2.7%8.4%2.7%9.3%5.9%0.7%3.4%
051Coal-4.1%-3.4%-4.1%12.0%6.1%2.8%4.6%
053Gas fuels3.8%-23.9%3.8%-8.3%-2.9%-8.5%-3.8%
055Utility natural gas-3.9%-6.7%-3.9%7.9%6.1%1.6%1.8%
056Crude petroleum (domestic production)12.7%27.1%12.7%14.4%5.4%-2.0%4.5%
057Petroleum products, refined4.2%19.6%4.2%11.7%7.5%0.2%5.1%
058Asphalt and other petroleum and coal products, n.e.c.-10.3%-13.2%-10.3%-5.1%-2.0%-1.4%7.0%
06CHEMICALS AND ALLIED PRODUCTS1.3%1.8%1.3%2.7%3.8%2.1%3.7%
061Industrial chemicals3.5%1.9%3.5%1.3%3.8%0.4%3.6%
062Paints and allied products0.2%-0.1%0.2%8.6%6.7%3.8%4.2%
063Drugs and pharmaceuticals-0.1%1.5%-0.1%2.4%2.2%3.8%4.4%
064Fats and oils, inedible-0.5%10.5%-0.5%2.4%12.2%2.1%3.6%
065Agricultural chemicals and chemical products0.6%2.1%0.6%5.8%4.8%1.7%3.5%
066Plastic resins and materials1.5%3.3%1.5%-2.8%4.5%0.5%2.9%
067Other chemicals and allied products0.7%1.0%0.7%7.0%4.7%2.9%3.0%
07RUBBER AND PLASTIC PRODUCTS0.6%0.8%0.6%7.0%5.3%2.9%3.3%
071Rubber and rubber products0.7%1.5%0.7%6.9%4.4%2.2%3.1%
072Plastic products0.6%0.7%0.6%7.0%5.5%3.1%3.4%
08LUMBER AND WOOD PRODUCTS0.2%1.6%0.2%-2.5%4.6%3.0%2.1%
081Lumber0.4%6.5%0.4%-13.0%3.5%1.7%1.1%
082Millwork0.1%1.5%0.1%5.2%6.1%4.4%3.2%
083Plywood1.0%0.8%1.0%-6.2%6.2%3.8%1.3%
084Other wood products0.2%-2.2%0.2%2.2%3.6%2.9%2.3%
085Logs, bolts, timber, pulpwood, woodchips and other roundwood products-0.1%0.0%-0.1%0.4%1.7%0.9%1.6%
086Prefabricated wood buildings & components0.0%0.8%0.0%7.5%7.5%5.1%3.4%
087Treated wood and contract wood preserving0.2%-0.1%0.2%2.1%6.0%3.3%2.4%
09PULP,PAPER, AND ALLIED PRODUCTS1.1%2.3%1.1%6.6%5.2%3.0%2.8%
091Pulp, paper, and prod., ex. bldg. paper1.1%2.2%1.1%6.4%4.7%2.7%3.1%
092Building paper & building board mill prods.9.6%14.2%9.6%-3.8%12.0%6.6%2.5%
094Publications, printed matter & printing material0.0%1.1%0.0%8.7%6.0%3.4%
10METALS AND METAL PRODUCTS-0.1%-0.2%-0.1%4.2%6.5%3.7%3.9%
101Iron and steel-2.0%-4.4%-2.0%-0.9%6.1%2.9%3.7%
102Nonferrous metals1.3%3.1%1.3%3.0%6.1%3.4%4.3%
103Metal containers-0.1%0.4%-0.1%9.2%6.5%4.1%3.5%
104Hardware-1.0%-0.5%-1.0%6.8%5.0%3.2%2.9%
105Plumbing fixtures and fittings0.2%1.2%0.2%4.9%3.8%3.1%3.1%
106Heating equipment-0.7%1.8%-0.7%9.7%7.5%5.1%4.5%
107Fabricated structural metal products0.5%0.4%0.5%11.4%9.1%5.6%4.3%
108Miscellaneous metal products0.3%1.4%0.3%7.1%5.0%3.1%2.8%
11MACHINERY AND EQUIPMENT0.5%2.0%0.5%6.8%4.6%2.8%1.9%
111Agricultural machinery and equipment0.3%0.9%0.3%9.0%6.3%3.8%3.4%
112Construction machinery and equipment0.5%1.0%0.5%8.7%5.8%3.7%3.4%
113Metalworking machinery and equipment0.2%2.4%0.2%7.0%4.7%3.0%2.5%
114General purpose machinery and equipment0.9%2.2%0.9%9.5%6.6%4.3%3.9%
115Electronic computers and computer equipment-0.1%2.0%-0.1%57.2%30.0%12.5%2.8%
116Special industry machinery and equipment0.7%1.8%0.7%7.9%6.2%3.7%2.6%
117Electrical machinery and equipment0.1%1.9%0.1%5.1%3.3%1.9%0.9%
118Miscellaneous instruments0.8%2.2%0.8%6.5%4.3%3.0%2.4%
119Miscellaneous machinery0.6%1.9%0.6%5.4%3.6%2.2%2.3%
12FURNITURE AND HOUSEHOLD DURABLES0.0%0.6%0.0%6.0%4.6%3.1%2.5%
121Household furniture-0.2%0.2%-0.2%5.5%4.4%3.1%2.7%
122Commercial furniture-0.4%1.4%-0.4%8.0%6.5%4.2%3.3%
123Floor coverings1.9%1.5%1.9%2.1%1.6%1.6%2.4%
124Household appliances0.2%-0.6%0.2%5.4%3.9%2.5%2.0%
125Home electronic equipment0.0%1.9%0.0%6.3%4.3%2.2%-0.1%
126Other household durable goods-0.3%0.2%-0.3%6.1%4.3%2.7%2.2%
13NONMETALIC MINERAL PRODUCTS-0.3%2.8%-0.3%8.8%6.2%4.4%4.2%
131Glass-0.1%0.4%-0.1%5.7%4.3%3.4%2.1%
132Concrete ingredients and related products-0.1%5.0%-0.1%9.2%6.8%5.4%4.8%
133Concrete products1.1%3.3%1.1%10.4%7.4%5.4%4.6%
134Clay construction products ex. refractories-0.7%-0.1%-0.7%6.0%4.3%2.8%2.1%
135Refractories0.9%1.7%0.9%7.4%4.9%3.7%4.0%
136Asphalt felts and coatings-1.8%-1.2%-1.8%8.6%6.6%4.0%5.5%
137Gypsum products-1.2%3.2%-1.2%9.4%7.5%5.1%4.7%
138Glass containers-0.4%3.4%-0.4%9.3%6.4%4.0%3.4%
139Other nonmetallic minerals-1.6%2.9%-1.6%8.4%5.1%3.0%4.0%
14TRANSPORTATION EQUIPMENT0.1%0.8%0.1%3.4%2.5%1.7%1.7%
141Motor vehicles and equipment0.0%0.2%0.0%3.2%2.3%1.6%1.4%
142Aircraft and aircraft equipment0.3%2.5%0.3%3.9%2.8%1.9%2.4%
143Ships and boats0.2%0.6%0.2%4.5%3.5%2.3%2.5%
144Railroad equipment0.0%0.6%0.0%1.7%0.9%1.0%2.1%
149Transportation equipment, n.e.c.0.1%-1.6%0.1%4.2%3.2%2.4%1.8%
15MISCELLANEOUS PRODUCTS0.2%2.3%0.2%6.8%5.4%3.9%3.4%
151Toys, sporting goods, small arms, etc.0.0%4.1%0.0%9.0%6.5%3.7%2.7%
152Tobacco products, incl. stemmed & redried0.0%3.3%0.0%9.8%8.4%7.0%5.8%
153Notions0.0%-0.1%0.0%7.4%5.1%3.2%3.7%
154Photographic equipment and supplies1.2%0.9%1.2%6.7%4.5%3.1%2.6%
155Mobile homes0.5%0.7%0.5%6.3%9.9%6.2%
156Medical, surgical & personal aid devices0.0%1.4%0.0%3.0%2.3%1.6%1.3%
157Other industrial safety equipment0.0%2.2%0.0%7.8%5.3%3.1%2.4%
159Other miscellaneous products0.5%1.8%0.5%8.1%5.9%3.8%3.0%

BLS CPI Historical Annual Inflation Rate Averages Through April 2024 Table for Selected Categories

BLS CPI CodeBLS CPI Category Description1MYTD1 YR 4/243Y 4/245 YR 4/2410 YR 4/2420Y 4/24
SAFFOOD & BEVERAGES0.2%1.0%2.2%6.2%4.8%3.1%2.9%
SAF11Food at home0.1%0.9%1.1%6.3%4.8%2.5%2.6%
SAF114Nonalcoholic beverages & beverage materials-0.3%2.2%2.3%7.1%5.3%2.9%2.3%
SEFNJuices & nonalcoholic drinks-0.4%2.6%3.3%7.6%5.8%3.4%2.5%
SEFN01Carbonated drinks0.4%4.1%4.1%8.4%6.4%3.8%3.1%
SEFN03Nonfrozen noncarbonated juices & drinks-1.2%1.2%2.0%6.8%5.3%3.0%2.0%
SEFPBeverage materials including coffee & tea0.0%1.3%-0.1%6.0%3.9%1.8%1.9%
SEFP01Coffee-0.7%0.7%-2.0%5.9%3.8%1.6%2.4%
SEFP02Other beverage materials including tea1.0%2.3%3.2%6.1%4.2%2.2%1.8%
SAF115Other food at home0.4%1.1%1.4%7.5%5.3%2.9%2.6%
SEFT06Other miscellaneous foods0.8%0.5%1.4%7.4%5.2%2.8%2.2%
SEFWAlcoholic beverages at home0.0%1.1%1.6%2.7%2.3%1.5%1.5%
SEFW01Beer, ale & other malt beverages at home0.5%1.8%3.0%4.7%3.7%2.5%2.3%
SEFW02Distilled spirits at home-1.0%0.2%0.8%1.3%1.4%0.9%0.9%
SEFW03Wine at home0.1%1.2%0.8%1.6%1.3%0.9%0.9%
SEHEFUEL OIL & OTHER FUELS-1.4%-0.7%-0.5%10.2%5.6%0.9%4.8%
SAH3HOUSEHOLD FURNISHINGS & OPERATIONS-0.6%0.4%-1.7%4.4%3.6%1.8%0.8%
SAAAPPAREL-0.1%6.1%1.3%3.4%1.2%0.3%0.4%
SAM1MEDICAL CARE COMMODITIES0.4%0.1%2.5%2.9%1.5%1.9%2.1%
SEMFMedicinal drugs0.5%0.2%2.6%2.7%1.5%1.9%
SEMF01Prescription drugs0.2%-0.4%0.4%1.7%0.8%2.0%8.4%
SEMF02Nonprescription drugs1.1%1.2%7.7%5.4%3.0%1.3%
SEMGMedical equipment and supplies-0.4%-1.0%1.5%5.1%1.6%0.9%
SARRECREATION0.2%1.2%1.5%3.6%2.8%1.8%1.2%
SEEAEDUCATIONAL BOOKS & SUPPLIES1.7%0.6%2.6%0.6%0.3%1.4%3.5%
SEGATOBACCO & SMOKING PRODUCTS0.0%1.5%6.7%6.8%6.4%5.4%6.0%
SEGBPERSONAL CARE PRODUCTS-0.2%1.5%6.7%3.8%2.2%0.9%0.7%
SEGEMISCELLANEOUS PERSONAL GOODS0.0%0.1%8.7%4.4%3.3%0.3%-0.1%
SAGOTHER GOODS AND SERVICES0.5%1.8%6.1%5.5%4.4%3.2%3.1%
SEREOther recreational goods-0.1%-1.2%1.6%-1.2%-1.5%-4.1%-4.0%
SERGRecreational reading materials-0.4%0.8%-0.1%1.4%2.7%1.9%1.8%

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