Federal Income Tax Calculator
Tax brackets are marginal, not flat — moving into a higher bracket only raises the rate on income above that threshold, not all of it.
$10,970 Federal income tax
- Effective rate
- 12.2%
- Marginal rate
- 22%
- Taxable income
- $73,900
| Rate | Income taxed at this rate | Tax at this rate |
|---|---|---|
| 10% | $12,400 | $1,240 |
| 12% | $38,000 | $4,560 |
| 22% | $23,500 | $5,170 |
Federal tax only, standard deduction assumed — state income tax and credits aren't modeled.
How it works
Taxable income is gross income minus the standard deduction and any pre-tax deductions. Each dollar is taxed at the rate for the bracket it falls into, so the bracket breakdown table shows exactly how much is taxed at each rate.
Explain it to a kid
The government charges different rates on different slices of your money, like a layer cake — the first slice is taxed a little, and only the top slice (whatever you earn above a certain amount) is taxed more. This calculator shows each slice.
Frequently asked questions
What's the difference between effective and marginal tax rate?
Marginal rate is what you pay on your next dollar of income — the rate of the highest bracket you reach. Effective rate is your total tax divided by your total income, which is always lower than the marginal rate because only the income inside each bracket is taxed at that bracket's rate.
Does moving into a higher tax bracket reduce my take-home pay overall?
No — a common misconception. Only the income that falls within the higher bracket is taxed at the higher rate; every dollar below that threshold is still taxed at the lower rates that applied to it. A raise can never leave you with less after-tax income.
Does this include state income tax?
No — only federal income tax is modeled here, using the standard deduction. State income tax rules vary by state and aren't included.
Does this account for itemizing deductions or tax credits?
No — this assumes the standard deduction and doesn't model itemized deductions or credits (like the Child Tax Credit), both of which would lower the tax shown here for an eligible filer.