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Tax bracket calculator

See exactly how your tax brackets work.

The U.S. uses progressive tax brackets — meaning each slice of your income gets taxed at its bracket's rate, not your entire income at the top rate. This calculator shows that visually, plus the difference between your marginal and effective tax rates.

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2025 tax year

Federal brackets and standard deductions update annually. This calculator reflects 2025 tax year rates. State taxes not included.

Educational simulation. Excludes state taxes, FICA, deductions beyond standard, and tax credits. Not tax advice.

Effective tax rate

12.3%

Average across your full income

Marginal tax rate

22%

Rate on your next dollar earned

$10,453
Federal tax owed
$70,000
Taxable income
After $15,000 std deduction
$74,547
After federal tax
(Before FICA + state)

How your taxable income is taxed

Each slice of income is taxed at its bracket's rate.

10%$0–$11,600
$11,600 $1,160 tax
12%$11,600–$47,150
$35,550 $4,266 tax
22%$47,150–$100,525← your bracket
$22,850 $5,027 tax

The biggest myth in personal finance: "If I earn one more dollar, I'll be in a higher bracket and lose money." That's not how it works. Only the dollars above each bracket threshold are taxed at the higher rate. Earning more never reduces your take-home — it just means slightly more tax on the additional income.

What this means in practice

Your next $1,000 earned

$780 kept

$220 federal tax

$1,000 in pre-tax 401(k)

$220 tax saved

Costs only $780 to your paycheck

Why this matters

The most consequential tax myth in personal finance.

"Don't take the raise — you'll be in a higher tax bracket and actually take home less." Almost every American has heard this. It's wrong. It's been wrong for over a century.

U.S. federal income tax is progressive. The 22% bracket doesn't mean your whole income gets taxed at 22% — it means the slice of income within that range is taxed at 22%. Cross into the 24% bracket and only the dollars above that threshold get the 24% treatment. Everything below it stays taxed exactly where it was.

Earning more income always means more take-home pay. Always. The marginal rate just reduces how much of each additional dollar you keep — never makes you poorer.

Where this DOES matter: when you're deciding between traditional vs Roth retirement accounts, when timing income or capital gains across years, or when figuring out how much a bonus is "worth" after tax. The marginal rate tells you what's happening on the margin. The effective rate tells you the average.

Related lessons

Educational simulation only. Uses 2025 federal tax brackets — these update annually for inflation. Excludes state taxes, FICA, deductions beyond the standard deduction, and tax credits. This is not personalized tax advice — consult a CPA or tax professional for your specific situation.