Average Tax Rate Calculator
Calculate your average (effective) tax rate from total tax paid and income.
Understand average vs marginal vs effective rates using 2026 US tax brackets.
Changing your currency elsewhere on the site will not affect this page.
Average Tax Rate vs Marginal Tax Rate
These are two of the most confused concepts in personal finance, and understanding the difference can change how you think about every financial decision.
Average Tax Rate
Also called the effective tax rate. It is the percentage of your total income that you actually paid in taxes.
Average Tax Rate = Total Tax Paid ÷ Taxable Income × 100
Effective Tax Rate (on Gross Income)
A slightly different version that uses total gross income (before deductions) as the denominator:
Effective Rate = Total Tax Paid ÷ Gross Income × 100
Marginal Tax Rate
The tax rate on your last dollar earned, the rate applied to the top slice of your income. This is your tax bracket.
A common misconception: people think moving into a higher bracket means ALL their income is taxed at that rate. This is wrong. Only the income above the bracket threshold is taxed at the higher rate. Every dollar below is still taxed at the lower bracket rate.
2026 US Federal Tax Brackets (Single Filers)
| Taxable Income Range | Marginal Rate |
|---|---|
| $0 – $12,400 | 10% |
| $12,401 – $50,400 | 12% |
| $50,401 – $105,700 | 22% |
| $105,701 – $201,775 | 24% |
| $201,776 – $256,225 | 32% |
| $256,226 – $640,600 | 35% |
| Over $640,600 | 37% |
2026 US Federal Tax Brackets (Married Filing Jointly)
| Taxable Income Range | Marginal Rate |
|---|---|
| $0 – $24,800 | 10% |
| $24,801 – $100,800 | 12% |
| $100,801 – $211,400 | 22% |
| $211,401 – $403,550 | 24% |
| $403,551 – $512,450 | 32% |
| $512,451 – $768,700 | 35% |
| Over $768,700 | 37% |
Worked Example (Single Filer, $85,000 taxable income)
- 10% on first $12,400 = $1,240
- 12% on $12,401–$50,400 = $38,000 × 12% = $4,560
- 22% on $50,401–$85,000 = $34,600 × 22% = $7,612
- Total Tax = $13,412
- Marginal Rate = 22% (the bracket you are in)
- Average Tax Rate = $13,412 ÷ $85,000 = 15.8%
Your average rate is always lower than your marginal rate, and that is guaranteed by the progressive system: every dollar below the top bracket is taxed at a lower rate than the last one.
That guarantee only holds for federal income tax on its own, though. If you type in a total that also includes self-employment tax, payroll tax, state tax or a penalty, the average can easily come out above the bracket rate. The calculator says so when it happens rather than reporting a negative gap.
Bracket year. The tables above are the 2026 federal brackets. Thresholds are indexed for inflation every year, so if you are working on a current return, check the figures against the IRS tables for that tax year. The method does not change; only the numbers move.
Pro Tips
- Use the marginal rate when deciding whether to take on extra income (freelance work, Roth conversions, etc.): that rate tells you the cost of the next dollar earned.
- Use the average rate to understand your true overall tax burden.
- Standard deduction for 2026: $16,100 (single), $32,200 (married filing jointly). Subtract from gross income to get taxable income.
- State income taxes are separate and additional: this calculator covers federal only.
How we build and check this calculator
This calculator runs entirely in your browser, so the numbers you enter stay on your device. The math behind it is written by hand and tested against worked examples and standard references before the page goes live.
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