Income Tax Calculator
Income tax is progressive: each slice of income is taxed at its own rate, so the whole amount is never taxed at the top rate. The effective rate is what you actually pay; the marginal rate is what the next dollar costs.
Estimated federal tax
$11,553.00
- Effective rate
- 1540.40%
- After-tax income
- $63,447.00
- Marginal rate
- 2200.00%
Values update as you type. This calculator covers the single scenario its formula assumes — see Common Mistakes for what it leaves out.
The formula this calculator uses
Tax = sum of each bracket amount x its rate; Effective rate = tax / income
- income
- Taxable income after deductions
- bracket
- The slice of income taxed at one rate
- effective
- Total tax divided by income
- marginal
- Rate on the last dollar earned
How to check the result by hand
- 1
Start from taxable income
Use income after deductions, not gross pay. The standard deduction already removes a slice before the brackets apply.
- 2
Split income into brackets
Work out how much of the income falls in each band. Only the amount inside a band is taxed at that band's rate.
- 3
Tax each band at its rate
Multiply each band amount by its rate and add the results. This is the total tax before credits.
- 4
Compute the effective rate
Divide the total tax by taxable income and multiply by 100. It will be lower than the marginal rate.
- 5
Identify the marginal rate
The marginal rate is the band the last dollar falls in. It is the rate that applies to any additional income or deduction.
For worked examples, common mistakes and the limits of this formula, read the full How To Calculate Income Tax page.