Income Tax Calculator

What the Income Tax Calculator does

Progressive income tax charges each slice of income at its own rate, so moving into a higher bracket only affects the income above that threshold. This calculator applies brackets to taxable income after deductions and reports tax owed, the effective rate on all income and the marginal rate on the next unit earned.

It also works as a tax calculator or a tax bracket calculator.

Formula

• Taxable income = gross income − deductions
• Tax = Σ (income within each bracket × bracket rate)
• Effective rate = tax ÷ gross income
• Marginal rate = rate of the bracket containing the last unit of income

Worked example

Using the starting values in the calculator above:

How to read the result

Your effective rate is always lower than your marginal rate under progressive brackets. A raise never reduces take-home pay from income tax alone.

This covers one tax. Payroll taxes, state or local taxes and credits are separate; use the paycheck calculator for a fuller picture.

Estimates only, not tax advice. Rates and thresholds change; confirm current figures with your tax authority or adviser.

Related calculators

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• Self-employment Tax Calculator: Calculate US self-employment tax on net earnings, the Social Security and Medicare parts and the deductible half.
• Quarterly Estimated Tax Calculator: Estimate US quarterly estimated tax payments from expected income, self-employment tax and withholding, with the prior-year safe harbor.
• Freelance Tax Estimator: Estimate total tax on freelance income, including self-employment tax, federal brackets and state tax, and the share to set aside.

Browse every calculator in Tax and Accounting Calculators, or talk to us about finance workflow automation.