Marginal Tax Bracket Calculator

About this calculator

Progressive income tax systems split income into brackets, and each bracket's rate applies only to the slice of income that falls within it — not to your entire income at once. This calculator walks your income through a set of three brackets, taxing the portion in each bracket at that bracket's rate, then sums the pieces to get your total tax and reports both your marginal rate (the rate on your last dollar earned) and your effective rate (total tax divided by total income).

The gap between the marginal and effective rate is a common source of confusion — a raise that pushes you into a higher bracket only taxes the income above the bracket threshold at the new rate, not your whole salary. Taxpayers use tools like this to understand how much of a raise or bonus they actually keep, and to see why the effective rate is always lower than the top marginal rate applied.