Marginal Tax Rate
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AixKit
All-in-One Online Calculators
AixKit
All-in-One Online Calculators
Part of: Finance & Tax →
The Marginal Tax Rate Calculator computes your federal income tax liability bracket by bracket, showing your marginal rate (the rate on your next dollar of income), your effective rate (average rate across all income), and a full breakdown of how much tax you pay in each bracket. To put your after-tax income to work, use our Savings Calculator to project how savings grow over time.
All results are estimates of federal income tax only. State taxes, FICA, AMT, deductions not entered, and tax credits are not included. This is not tax advice.
Marginal tax rate is the rate applied to the last (or next) dollar of income you earn. It is the rate of the highest bracket your income reaches. It does not mean your entire income is taxed at that rate.
Effective tax rate (also called the average rate) is your total federal tax divided by your total taxable income. Because the US uses a progressive tax system, your effective rate is always lower than your marginal rate (unless your entire income falls within the 10% bracket).
| Concept | Definition | Use it for |
|---|---|---|
| Marginal Rate | Rate on the next dollar earned | Bonus planning, extra income decisions, deduction value |
| Effective Rate | Total tax ÷ taxable income | Budgeting, comparing overall tax burden year to year |
The US federal income tax system is progressive: income is divided into ranges (brackets), and each bracket has its own rate. Only the portion of income within each bracket is taxed at that bracket's rate. Higher-bracket rates apply only to income above the lower bracket's ceiling — not to your entire income.
There are currently seven federal income tax rates: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The bracket thresholds are adjusted annually for inflation. For retirement planning that factors in tax-deferred growth, see our IRA Calculator.
| Bracket | Rate | Income in Bracket | Tax Paid |
|---|---|---|---|
| $0 – $11,925 | 10% | $11,925 | $1,192.50 |
| $11,925 – $48,475 | 12% | $36,550 | $4,386.00 |
| $48,475 – $75,000 ← your bracket | 22% | $26,525 | $5,835.50 |
| Total Federal Tax | $11,414.00 | ||
| Marginal Tax Rate | 22% | ||
| Effective Tax Rate | ~15.2% | ||
Notice that only the $26,525 above $48,475 is taxed at 22%. The 22% marginal rate applies to the next dollar of income earned — for example, a $5,000 bonus would be taxed at 22% (ignoring withholding). Enter your actual numbers above for a personalised calculation.
This calculator uses taxable income — income after the standard deduction (or itemized deductions if higher) has been subtracted. For 2025, the standard deduction is:
If your gross income is $90,000 and you are Single in 2025, your taxable income is approximately $90,000 − $15,000 = $75,000 (before any additional deductions or adjustments). Enter that $75,000 in the calculator above.
| Rate | Single | Married Jointly | Head of Household |
|---|---|---|---|
| 10% | $0 – $11,925 | $0 – $23,850 | $0 – $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 – $250,500 |
| 35% | $250,525 – $626,350 | $501,050 – $751,600 | $250,500 – $626,350 |
| 37% | $626,350+ | $751,600+ | $626,350+ |
Source: IRS Revenue Procedure 2024-40 (2025 tax year). Brackets apply to taxable income after deductions. State tax is not included.
No. Only the income within each bracket is taxed at that bracket's rate. If your marginal rate is 22%, only the portion of your income above the 12% bracket ceiling is taxed at 22%. All income below that threshold is taxed at the lower rates that apply to those portions. This is the defining feature of a progressive tax system, and it is why your effective rate is always lower than your marginal rate.
Gross income is your total income before any deductions. Taxable income is what remains after subtracting deductions — either the standard deduction or itemized deductions, whichever is higher. Most people use the standard deduction. Enter taxable income in this calculator (the amount after deductions), not your gross income.
No. This calculator covers federal income tax only. Social Security (6.2%) and Medicare (1.45%) taxes are calculated separately on earned income. State income tax varies by state. The Alternative Minimum Tax (AMT) applies to specific high-income situations. Deductions, credits, and other adjustments that reduce your tax liability are not included.
Pre-tax retirement contributions (Traditional 401(k), Traditional IRA) reduce your taxable income dollar-for-dollar, which can move income out of a higher bracket. For example, contributing $5,000 to a Traditional IRA at a 22% marginal rate reduces federal tax by $1,100. Roth contributions do not reduce current taxable income but grow and are withdrawn tax-free. Use our IRA Calculator to model the long-term impact.
Your marginal rate is the rate at which every additional dollar of income is taxed — and the rate at which every dollar of deduction saves you tax. It is the relevant rate for deciding whether to contribute to a pre-tax or Roth account, whether to take a freelance project, how much a raise is worth after tax, and how to prioritize between saving and reducing high-cost balances.
Understanding your marginal and effective federal tax rates gives you a precise lens for financial decisions — from evaluating a salary negotiation to deciding how much to contribute pre-tax to a retirement account. Enter your taxable income above and the calculator will show your bracket breakdown instantly. All results are estimates of federal income tax; state taxes, FICA, credits, and deductions not entered are not reflected.