Effective Tax Rate Calculator
Find your true effective federal tax rate versus your marginal bracket rate using 2026 IRS brackets.
Marginal vs Effective Tax Rate
Your marginal rate is your bracket — the rate applied to each additional dollar you earn. Your effective rate is your average — total tax divided by total income. For most people, these are very different. A single filer with $100,000 taxable income has a 22% marginal rate but an effective rate closer to 16%.
Why Effective Rate Matters for Planning
When evaluating a raise or additional income, use your marginal rate to estimate the additional tax. When budgeting or comparing your tax burden year over year, use your effective rate. Confusing the two leads to over- or under-estimating what you actually owe.
Total Tax Burden vs Federal Effective Rate
Federal effective rate is only part of your total tax burden. Add state income tax (0–10%), FICA (7.65%), and any local taxes. A worker in California paying 9.3% state tax, 7.65% FICA, and 16% federal effective rate faces a combined burden of over 33% — meaning they keep less than 67 cents of each dollar earned.