📊Tax Bracket Calculator
Find your federal tax bracket and understand your marginal vs. effective tax rate.
Frequently Asked Questions
What is a tax bracket?
Tax brackets are income ranges taxed at different rates. The US has a progressive tax system with 7 brackets (10%, 12%, 22%, 24%, 32%, 35%, 37%). You don't pay your top rate on all income - only the portion in each bracket. For example, a single filer earning $60,000 pays 10% on the first $11,600, 12% on income from $11,600-$47,150, and 22% only on the amount over $47,150.
What's the difference between marginal and effective tax rate?
Your marginal rate is the highest bracket you reach - the rate on your last dollar earned. Your effective rate is your average rate - total tax divided by total income. For a single filer with $60,000 income, the marginal rate is 22% but the effective rate is only about 13% because earlier income was taxed at lower rates. Understanding this difference is crucial for tax planning.
Will earning more money push me into a higher bracket?
Yes, but only the additional income is taxed at the higher rate, not your entire income. This is a common misconception. If you're single making $47,000 (top of 12% bracket) and get a $10,000 raise, only the $10,000 is taxed at 22%, not your entire $57,000. You always keep more by earning more - higher brackets never make you worse off.
How do tax brackets affect my raise?
When you get a raise, only the additional income is taxed at your marginal rate. If you're in the 22% bracket and get a $5,000 raise, you'll pay about $1,100 more in federal tax (22% of $5,000), plus FICA taxes (7.65%). You keep about $3,000-3,500 of the raise. The raise doesn't retroactively increase taxes on your existing income.
What income counts toward my tax bracket?
Your tax bracket is based on taxable income, not gross income. Start with your gross income, subtract the standard deduction ($13,850 single, $27,700 married for 2023), then subtract any additional deductions (IRA contributions, student loan interest, etc.). The remaining taxable income determines your bracket. This is why two people with the same gross income can be in different brackets.