Effective Tax Rate Calculator: guide
Your effective tax rate is one of the simplest numbers in personal finance: it tells you what percentage of your income you actually paid in tax.
Effective rate vs tax bracket
Your tax bracket is marginal.
Your effective tax rate is your total tax divided by your income. It is almost always lower than your top bracket.
Which income number should you use?
If you want a true "overall" rate, many people use total income.
If you want a tax-bracket style rate, you might use taxable income instead.
What taxes to include
- Federal income tax (most common)
- State income tax (optional)
- Payroll taxes (FICA) if you want a full picture
Why this is useful
- Comparing years
- Planning withholding
- Understanding the impact of deductions and credits
Try the calculator
Use our effective tax rate calculator to estimate your rate in seconds.