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From Terraria Wiki
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The Worm Scarf is an Expert Mode accessory that reduces incoming damage by 17%. The Worm Scarf is always obtained from the Eater of Worlds' Treasure Bag.
This damage reduction from this item is calculated after defense is applied:
Damage_taken = ( Raw_damage - (Defense * (.5 or .75 for normal or expert mode)) ) * (1 - .17)
- Percent damage reduction on accessories/potions apply first, then damage reduction on set bonuses are applied (e.g. Beetle Armor, Solar Flare Armor).
- When defeating the Dungeon Guardian, The Worm Scarf (when combined with a few potions or accessories) can allow the player to easily survive a hit from the Dungeon Guardian without the use of too many accessories and buffs.
- As the game progresses, enemies will start hitting well into the 300-400 damage range. The Worm Scarf thus becomes valuable in reducing damage and making blows tolerable.
- Since the Worm Scarf can be taken into non-expert worlds, it is often a good idea to level a character up to near or post-Hardmode gear, create an Expert world, and easily defeat the Eater of Worlds for its Worm Scarf, which remains useful even at endgame.
(100%-45%) * (100%-(17%+10%)) = 40.15% damage taken = 59.85% damage reduction
- Frozen Turtle Shell (25%) will further increase it to almost 74%.
(100%-45%) * (100%-(25%+17%+10%)) = 26.4% damage taken = 73.6% damage reduction