Marginal Tax Calculator
It is important to know your tax bracket and how this tax bracket can affect your income tax and the tax liability that you may have. Knowing and understanding your tax bracket can help you to plan for your retirement and how you should invest your hard-earned money. The marginal tax calculator will help you estimate your average tax rate, your current tax bracket, and your marginal tax rate. This calculator sorts through the tax brackets and filing options to calculate your true tax liability.
Financial Calculators from
Marginal tax inputs:
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Standard or itemized deduction:
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Your taxes are estimated at $0.
Federal Income Tax Rates
Use the ‘Filing Status and Federal Income Tax Rates’ table to assist you in estimating your federal tax rate.
|Tax Rate||Married Filing Jointly or Qualified Widow(er)||Single||Head of Household||Married Filing Separately|
|*Caution: Do not use these tax rate schedules to figure 2018 taxes. Use only to figure 2019 estimates. Source: Rev. Proc. 2018-57|
|10%||$0 - $19,400||$0 - $9,700||$0 - $13,850||$0 - $9,700|
|12%||$19,400 - $78,950||$9,700 - $39,475||$13,850 - $52,850||$9,700 - $39,475|
|22%||$78,950 - $168,400||$39,475 - $84,200||$52,850 - $84,200||$39,475 - $84,200|
|24%||$168,400 - $321,450||$84,200 - $160,725||$84,200 - $160,700||$84,200 - $160,725|
|32%||$321,450 - $408,200||$160,725 - $204,100||$160,700 - $204,100||$160,725 - $204,100|
|35%||$408,200 - $612,350||$204,100 - $510,300||$204,100 - $510,300||$204,100 - $306,175|
|37%||Over $612,350||Over $510,300||Over $510,300||Over $306,175|
Wages, salaries, tips, etc.
This is your total taxable income for the year after deductions for retirement contributions such as 401(k)s, IRAs, etc. For tax filing purposes this would be the same as your Adjusted Gross Income (however the calculator is unable to take lower capital gains taxes into consideration).
Choose your filing status. Your filing status determines the income levels for your Federal tax bracket. It is also important for calculating your standard deduction, personal exemptions, and deduction phase out incomes. The table below summarizes the five possible filing status choices. It is important to understand that your marital status as of the last day of the year determines your filing status.
|Married Filing Jointly||If you are married, you are able to file a joint return with your spouse. If your spouse died during the tax year, you are still able to file a joint return for that year. You may also choose to file separately under the status "Married Filing Separately".|
|Qualified Widow(er)||Generally, you qualify for this status if your spouse died during the previous tax year (not the current tax year) and you and your spouse filed a joint tax return in the year immediately prior to their death. You are also required to have at least one dependent child or stepchild for whom you are the primary provider.|
|Single||If you are divorced, legally separated or unmarried as of the last day of the year you should use this status.|
|Head of Household||This is the status for unmarried individuals that pay for more than half of the cost to keep up a home. This home needs to be the main home for the income tax filer and at least one qualifying relative. You can also choose this status if you are married, but didn't live with your spouse at anytime during the last six months of the year. You also need to provide more than half of the cost to keep up your home and have at least one dependent child living with you.|
|Married Filing Separately||If you are married, you have the choice to file separate returns. The filing status for this option is "Married Filing Separately".|
Are you someone's dependent?
Choose 'no' if no one can claim you or your spouse as a dependent. Choose 'yes' if someone can claim you as a dependent. Choose 'both you and your spouse if you both are dependents. (You are a dependent if someone supports you and can claim a dependency exemption for you.)
Dependents qualifying for child tax credit
You may be entitled to a child tax credit for each qualifying child who was under age 17 at the end of the year if you claimed an exemption for that child. The credit is, however, phased out at higher incomes.
Your standard deduction is used to reduce your taxable income if you do not use Schedule A to itemize your deductions, or if your Schedule A itemized deduction is less than your standard deduction. Your standard deduction is based on your filing status. For 2019, the standard deductions are:
|Filing Status||Standard Deduction|
|Married Filing Joint||$24,400|
|Heads of Household||$18,350|
|Married Filing Separately||$12,200|
Medical and dental expenses
Enter your qualified medical and dental expenses for the year. This can include your health insurance premiums if you paid for them yourself (not through an employer sponsored plan) and you have not deducted them elsewhere. Your actual deduction is only for the amount that exceeds 7.5% of your Adjusted Gross Income (AGI). Enter your total expenses and we will calculate the actual deduction based on your AGI.
Taxes paid (generally state and local)
Enter the total of your 1) state and local property taxes and 2) state and local income taxes. If your state does not have an income tax (or you have paid more sales tax than income tax during the year) you can choose to include state local sales taxes instead of state and local income taxes.
Taxpayers can deduct the interest paid on qualified residences for up to $750,000 in mortgage debt (the limit is $375,000 if married and filing separately). For mortgages that were originated before December 15, 2017, the limit is $1 million in total mortgage debt. This includes refinancing these mortgages as long as the amount owed is not increased as part of the refinancing.
Any interest paid on first, second or home equity mortgages over the limit is not tax deductible. Only home equity loans that are used to buy, build or substantially improve the home that secures the loan are included. All other home equity loans do not have an interest deduction. Mortgage interest is reported on form 1098.
You can also include the amount you paid for 'points' (which reduces your mortgage interest rate). Mortgage insurance premiums paid are no longer deductible.
Gifts to charity
Enter your total gifts of cash and non-cash to qualified charitable organizations.
Your total itemized deductions from Schedule A.
Standard or itemized deduction
This is the higher of your Standard Deduction or your Itemized Deduction.
What is Marginal Tax?
Marginal tax rates are used because they are considered to be the most fair; low income earners are taxed at a lower rate than high income earners. This is achieved by setting several tax brackets which earners’ incomes fall into. In the US, these brackets are 10%, 15%, 25%, 28%, 33%, 35% and 39.6%. The amount of salary the earner has in each bracket determines their taxable income:
10% - $0 to $9,275
15% - $9,275 to $37,650
25% - $37,650 to $91,150
28% - $91,150 to $190,150
33% - $190,150 to $413,350
35% - $413,350 to $415,050
39.6% - $415,050
However, the tax bracket does not determine the percentage of tax taken from the entire income. Instead, the income is taxed progressively. For example, a single person earning $100,000 per annum would be taxed as follows:
10% bracket: ($9,275 - $0) x 10% = $927.50
15% bracket: ($37,650 - $9,275) x 15% = $4,256.25
25% bracket: ($91,150 - $37,650) x 25% = $13,375
28% bracket: ($100,000 - $91,150) x 28% = $2,478
33%, 35% and 39.6% brackets are not applicable as the salary does not reach them.
Total tax: $927.50 $4,256.25 $13,375 $2,478 = $21,036.75 (21% average)
The dollar ranges are different depending on whether the person is filing as single, married, or head of household, while the tax brackets remain the same regardless.
How To Use The Marginal Tax Calculator
Not sure where to start? Let us help you:
- Select your filing status from the drop-down menu
- Specify whether you are a dependent from the second drop-down menu
- Use the slider or type in the box your annual wage, including all salaries, tips and bonuses
- Add your deductions and dependents – if you aren’t sure what to include, click the name for more information
- Click View Report to see a breakdown of your taxes.
Who is this Calculator for?
This calculator is most useful if you:
- Would like to quickly ascertain how much marginal tax you will need to pay
- Are interested in the effect of different salaries on overall tax rate
- Want to know your overall average rate of taxation
Is Marginal Tax Rate really fair?
Many people think so, as it encourages a system where people are not taxed more than they can afford. However there are schools of thought which insist that this method of taxation can decrease levels of entrepreneurship and motivation by not incentivizing high earnings.
Will earning more cause me to take home less?
A common concern, but fortunately not based in truth. The marginal tax system protects against this, as you are only taxed the higher percentage on the amount of money you earn above that percentage’s threshold. The example above should explain this clearly in more detail.
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