Effective Tax Rate Calculator

Your true effective rate includes more than just federal income tax. For a W-2 employee, total federal taxes include:

• Federal income tax: Calculated across 7 progressive brackets from 10% to 37%.
• Social Security tax: 6.2% on the first $176,100 of wages in 2025 (employer matches an additional 6.2%).
• Medicare tax: 1.45% on all wages (employer matches), plus 0.9% Additional Medicare Tax on wages exceeding $200,000 (single) / $250,000 (MFJ) -- this additional portion is employee-only.

For a single filer earning $100,000: federal income tax is roughly $16,915, Social Security is $6,200, and Medicare is $1,450, totaling $24,565 or an effective rate of 24.6% when including FICA. Self-employed workers pay both halves of FICA through the 15.3% self-employment tax on 92.35% of net income, resulting in even higher combined effective rates.

Adding state income tax pushes rates higher still. A California resident in the 9.3% state bracket has a combined effective rate approaching 34% on the same $100,000 income. In contrast, a Texas or Florida resident with no state income tax pays only the 24.6% federal + FICA rate.

IRS Statistics of Income data shows that effective federal income tax rates (excluding FICA) vary significantly by income level. Approximate averages for single filers using 2025 brackets:

These rates assume the standard deduction of $15,750 (single) for 2025 and no additional credits. Actual effective rates are often lower because of above-the-line deductions (IRA, HSA, student loan interest), tax credits (child tax credit, education credits), and preferential rates on qualified dividends and long-term capital gains.

The gap between marginal and effective rates grows wider at higher income levels. A taxpayer in the 37% bracket typically pays an effective rate of 30-33% because a large portion of their income is taxed at the lower brackets first.