Effective Tax Rate Calculator
Effective rate = tax ÷ income; marginal rate from an illustrative bracket map. Click any i for detail.
Tax & income
Total tax paid ($)
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Tax
Federal (and optional state) tax for the year. |
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|---|---|
Gross income ($)
i
Gross
AGI or total income before tax for the effective-rate denominator. |
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Taxable income ($)
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Taxable
Used to map an illustrative marginal bracket (2025 single). |
How to use this calculator
- Enter total tax paid.
- Enter gross income for the effective rate.
- Enter taxable income to sketch a marginal bracket.
- Compare effective vs marginal — they usually differ.
Results explained
Effective tax rate divides total tax by gross income. Marginal rate is the rate on the next dollar of taxable income. This page maps taxable income onto illustrative 2025 single brackets for a teaching marginal figure.
Quick reference: effective vs marginal
effective = tax / gross; marginal ≈ top bracket containing taxable income.
| Item | Detail |
|---|---|
| Effective < marginal | Common with progressive tax |
| Gross vs taxable | Choose the denominator your question uses |
| Credits | Lower tax → lower effective rate |
| Payroll taxes | Often tracked separately from income tax |
Educational worksheet — not a substitute for Form 1040 math.
How the estimate is built
effective% = tax / gross × 100; marginal% from illustrative bracket containing taxable income.
Example scenario
Tax $11,414 on gross $85,000 → effective ≈ 13.43%; taxable $75k → marginal 22%.
FAQ
Should I use AGI or taxable income for effective rate?
Many people use AGI/gross for effective rate; taxable income is for the marginal map.
Why is my marginal rate higher?
Progressive brackets tax only the top slice at the higher rate.
Can effective exceed marginal?
Unusual for ordinary progressive income tax without odd extras.
Include FICA?
Only if you folded payroll tax into the tax paid field.