Tax Bracket Calculator

Tax Bracket Calculator

Tax Bracket Calculator works out US federal income tax bracket by bracket for any income and filing status, and shows both the marginal rate and the effective rate. The difference between those two is the point of the tool.

How to use it

1. Enter your income.
2. Choose your filing status: single, married filing jointly, married filing separately, or head of household.
3. Pick the tax year.
4. Read the tax owed per bracket, plus your marginal and effective rates.

Marginal is not what you pay on everything

US federal income tax is progressive, which means the brackets apply to slices of income rather than all of it. Being in the 22% bracket does not mean 22% of your income goes to federal tax. It means the portion above that bracket's threshold is taxed at 22%, while the income below it is taxed at 10% and 12%.

Your effective rate is total tax divided by total income, and it is always lower than your marginal rate. This is why the widespread belief that a raise can leave you worse off is false: only the dollars above the threshold are taxed at the higher rate.

Worked example

When it helps

• Understanding what a raise actually costs you in tax.
• Estimating federal tax before filing.
• Comparing filing statuses.
• Working out whether a pre-tax contribution is worth making, which depends on your marginal rate.

Common mistakes

• Believing a raise into a higher bracket can reduce take-home pay. It cannot, under a progressive system.
• Confusing gross income with taxable income. Deductions come off first, and the standard deduction alone is substantial.
• Forgetting this is federal only. State income tax, FICA and local taxes are all separate.

What this tool handles

• An estimate for federal income tax only, and not tax advice. It does not model credits, itemised deductions, capital gains, self-employment tax or state tax. Consult a tax professional for anything that matters.