Result
- Effective tax ratetax ÷ taxable income15.78%
- Marginal tax raterate on your next dollar22%
- Take-home (after fed income tax only)gross input minus federal income tax — excludes FICA / state$71,588.00
- 10% bracket ($0–$12,400)$12,400.00 → $1,240.00
- 12% bracket ($12,400–$50,400)$38,000.00 → $4,560.00
- 22% bracket ($50,400–$105,700)$34,600.00 → $7,612.00
How to use this calculator
- Enter your taxable income — gross income minus standard deduction (or itemized).
- Pick the tax year (2024, 2025, or 2026).
- Select your filing status.
- Read the bracket-by-bracket breakdown to see where your income lands.
About this tool
The US federal income tax is progressive — different chunks of your income are taxed at different rates. This calculator walks the 2024, 2025, or 2026 federal tax brackets bracket-by-bracket so you can see exactly how much tax each portion of your income owes. The "marginal rate" is the rate on your next dollar earned (relevant for raise decisions), while the "effective rate" is your overall percentage (lower than marginal, because the lower brackets weighed your average down). Note: this assumes "taxable income" — that's your income after the standard or itemized deduction. Most filers use the standard deduction ($16,100 single / $32,200 MFJ for 2026).
What this calculator does
Identifies which US federal tax brackets your taxable income falls into and returns your marginal tax rate (rate on the last dollar earned) and effective tax rate (total tax as a percentage of income). Uses 2026 IRS bracket amounts.
How it works — the formula
Marginal rate = tax rate of the bracket containing the highest dollar of taxable income
Effective rate = Total tax owed ÷ Total taxable incomeProgressive marginal tax system means each dollar of income is taxed at the bracket rate for the income band it falls in. Marginal rate is always ≥ effective rate under a progressive system.
Worked examples
- Inputs:
- taxable income = $85,000, status = single
- Output:
- Marginal rate: 22%. Effective rate: ~13.8%. Total tax: $11,738.
Income spans 3 brackets (10%, 12%, 22%). Only the portion above $48,475 is taxed at 22%.
- Inputs:
- taxable income = $500,000, status = MFJ
- Output:
- Marginal rate: 35%. Effective rate: ~25.9%. Total tax: $129,568.
Income spans 6 brackets. Only about $110K is taxed at the top 35% rate, though the average feels high due to bracket stacking.
How progressive tax brackets work
The US federal income tax is progressive: your income is divided into slices, and each slice is taxed at its own rate. Only the portion of your income that falls in a given bracket is taxed at that bracket's rate — NOT your entire income at the highest applicable rate.
For a single filer with $85,000 taxable income in 2026: the first $11,925 is taxed at 10%, the next $36,550 (up to $48,475) at 12%, and the remaining $36,525 (up to $85,000) at 22%. Total tax is $11,925 × 10% + $36,550 × 12% + $36,525 × 22% = $1,193 + $4,386 + $8,036 = $13,614. The marginal rate is 22% (rate on the last dollar); the effective rate is 16.0% ($13,614 / $85,000).
This structure eliminates the common myth "I got a raise that pushed me into a higher bracket, so I take home less." Mathematically impossible — only the incremental income above the bracket threshold is taxed at the higher rate.
2026 tax brackets
The IRS Rev. Proc. 2025-32 sets these amounts for tax year 2026:
| Rate | Single | MFJ | HoH |
|---|---|---|---|
| 10% | Up to $11,925 | Up to $23,850 | Up to $17,000 |
| 12% | $11,925 – $48,475 | $23,850 – $96,950 | $17,000 – $64,850 |
| 22% | $48,475 – $103,350 | $96,950 – $206,700 | $64,850 – $103,350 |
| 24% | $103,350 – $197,300 | $206,700 – $394,600 | $103,350 – $197,300 |
| 32% | $197,300 – $250,525 | $394,600 – $501,050 | $197,300 – $250,525 |
| 35% | $250,525 – $626,350 | $501,050 – $751,600 | $250,525 – $626,350 |
| 37% | Over $626,350 | Over $751,600 | Over $626,350 |
When to use marginal rate
Marginal rate — the rate on your NEXT dollar of income (or deduction) — is the right number for most planning decisions.
Roth vs Traditional 401(k): if your marginal rate now is higher than your expected marginal rate in retirement, choose Traditional (defer the tax to a lower bracket). If lower now than expected in retirement, choose Roth.
Charitable donation planning: the tax savings on a deductible donation equal donation × marginal rate. A $1,000 donation saves $220 at 22% marginal, $370 at 37% marginal.
Tax-loss harvesting: the value of a realized capital loss depends on your marginal rate (up to $3,000 offsets ordinary income at your marginal rate; beyond that carries forward against future capital gains).
Overtime or bonus decision: for a "should I take the extra shift?" analysis, the marginal rate tells you what percentage of the extra pay goes to tax vs take-home.
When to use effective rate
Effective rate — total tax owed divided by total income — is the right number for budgeting and comparing overall tax burdens.
"What percentage of my income goes to federal tax?" Answer: your effective rate.
"How does my tax burden compare to others?" Effective rate makes fair comparisons; marginal rates can be misleading because two people with similar effective rates may have very different marginal rates.
"What is the true after-tax value of my compensation?" Effective rate gives the answer for after-tax income planning.
How to lower your marginal rate
Reducing taxable income enough to fall into a lower marginal bracket is one of the most valuable tax-planning moves. Key levers:
- Maximize pre-tax 401(k) or 403(b) contributions (up to $23,500 in 2026, +$7,500 catch-up 50+)
- Contribute to a Traditional IRA if deductible (up to $7,000, +$1,000 catch-up 50+)
- Maximize HSA contributions if you have a High-Deductible Health Plan ($4,300 single / $8,550 family in 2026)
- Use FSA for foreseeable healthcare and dependent care
- Consider deductible SEP-IRA or Solo 401(k) if self-employed
- Bunch itemizable deductions (charitable donations, medical expenses) into alternating years
- Harvest capital losses to offset up to $3,000 of ordinary income
A middle-income taxpayer at the 22%/24% bracket boundary can often drop to the 22% bracket by maxing 401(k) contributions alone. That single move saves 2 percentage points on the incremental income — real money that compounds if the savings are then invested.
Limitations
- Federal income tax only — state income tax, FICA, Additional Medicare, and NIIT are separate calculations.
- Uses taxable income as input, not gross. Compute taxable income by subtracting deductions and above-the-line adjustments from gross income.
- Does not model Alternative Minimum Tax (AMT), which affects some high-income taxpayers with specific deduction patterns.
Federal income tax only. This calculator does not provide tax advice — consult a CPA for complete tax planning.