Effective Tax Rate Calculator
Calculate your true effective tax rate. See the difference between your marginal rate and the actual percentage of income you pay in taxes.
401(k), HSA, IRA contributions, etc.
Child tax credit, education credits, etc.
Effective Rate
21.3%
Total tax / gross income
Marginal Rate
22%
Your tax bracket
Rate Breakdown
Total Federal Tax
$21,264
After-Tax Income
$78,736
Effective Tax Rate by State
See how state taxes affect your effective rate in the 10 most populous states.
CA
California
Progressive
FL
Florida
No state tax
GA
Georgia
5.5% flat
IL
Illinois
5.0% flat
MI
Michigan
4.3% flat
NY
New York
Progressive
NC
North Carolina
4.8% flat
OH
Ohio
Progressive
PA
Pennsylvania
3.1% flat
TX
Texas
No state tax
Understanding Tax Rates
Your effective tax rate is your total tax paid divided by your total income. It represents the actual percentage of income you pay in taxes. Due to progressive tax brackets, it's always lower than your marginal rate.
Your marginal tax rate is the rate you pay on your last dollar of income. It's the tax bracket you're in. This rate applies only to income above certain thresholds, not your entire income.
Deductions reduce your taxable income (save tax × marginal rate). Credits reduce your tax dollar-for-dollar. A $1,000 credit saves $1,000; a $1,000 deduction saves $220-$370 depending on your bracket.
Understanding your effective rate helps with financial planning. If you're in the 22% bracket but your effective rate is 12%, you're not losing 22 cents of every dollar—you're keeping 88 cents.