What is the difference between marginal and effective rate?
Marginal rate is the tax rate on your *last* dollar earned. Effective rate is the average rate you pay on your *total* income.
Calculator
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Analysis
Interpretation of the current calculator output
Enter values to see detailed analysis and insights.
How to Use
Step-by-step instructions
- 1Enter your total annual Gross Income
- 2Select your filing status (Single, Married, etc.)
- 3Enter your deductions (Standard or Itemized)
- 4Review your estimated Total Tax and Effective Tax Rate
Progressive Tax
The US uses a progressive tax system, meaning higher portions of your income are taxed at higher rates.
Tax = Σ (Income in Bracket × Bracket Rate)Variables:
Taxable IncomeGross Income - DeductionsBracket RateTax percentage for that specific chunk of incomeExample
Single Filer
Inputs:
Income:$75,000
Deduction:$13,850
Steps:
- 1.Taxable Income = $75,000 - $13,850 = $61,150
- 2.First $11,000 @ 10% = $1,100
- 3.Next $33,725 @ 12% = $4,047
- 4.Remaining $16,425 @ 22% = $3,613.50
- 5.Total Tax = $8,760.50
Result:
$8,760 Tax (11.7% Effective Rate)
Frequently Asked Questions
Should I take the standard deduction?
Most people take the standard deduction unless their itemized deductions (mortgage interest, charity, state taxes) add up to more.
Does this include state taxes?
No, this calculator estimates Federal Income Tax only. State taxes vary significantly by location.