Tax Bracket Calculator

This tax bracket calculator helps you estimate your federal income tax based on your filing status and taxable income. Understand your marginal and effective tax rates to better plan your finances.

Enter your annual taxable income after deductions and exemptions

How the Tax Bracket Calculator Works

The U.S. federal income tax system uses a progressive tax structure with different tax rates for different income levels. Here's how it works:

Progressive Tax System

The U.S. uses a marginal tax rate system, which means you pay different tax rates on different portions of your income:

  • The first portion of your income is taxed at the lowest rate
  • The next portion is taxed at the next higher rate
  • This continues until all your income is taxed

Calculating Federal Income Tax

To calculate your federal income tax:

  1. Determine your filing status (Single, Married Filing Jointly, etc.)
  2. Calculate your taxable income (gross income minus deductions and exemptions)
  3. Apply the appropriate tax rates to each portion of your income
  4. Sum up the tax for each portion to get your total federal income tax

Understanding Tax Rates

There are two important tax rates to understand:

Marginal Tax Rate = The tax rate applied to your last dollar of income (your tax bracket)
Effective Tax Rate = (Total Tax ÷ Taxable Income) × 100%

Example Calculation

For a single filer with $75,000 taxable income in 2023:

  • First $11,000 taxed at 10% = $1,100
  • Next $33,725 taxed at 12% = $4,047
  • Remaining $30,275 taxed at 22% = $6,661
  • Total federal income tax = $11,808
  • Marginal tax rate = 22%
  • Effective tax rate = ($11,808 ÷ $75,000) × 100% = 15.7%

Tax Planning Considerations

  • Marginal vs. Effective Rate: Your marginal rate is often higher than your effective rate
  • Tax Deductions: Reduce your taxable income, potentially moving you to a lower tax bracket
  • Tax Credits: Directly reduce your tax liability, dollar for dollar
  • Retirement Contributions: Contributing to tax-advantaged accounts can lower your taxable income
  • Income Timing: Strategically timing income and deductions between tax years can optimize your tax situation

Note: This calculator provides estimates for federal income tax only. It does not include state taxes, local taxes, FICA taxes (Social Security and Medicare), or other taxes. For complete tax planning, consult a tax professional.