Your marginal rate is what the next dollar of income is taxed at; your effective rate is your total tax divided by total income. Confusing the two leads people to overpay on Roth conversions and side income. Enter your income to see both.
| Filing Status | Income | Taxable | Total Tax | Effective | Marginal |
|---|---|---|---|---|---|
| Single | $75,000 | $60,000 | $8,114 | 10.82% | 22% |
| Married (MFJ) | $150,000 | $120,000 | $16,228 | 10.82% | 22% |
| Single | $400,000 | $385,000 | $104,297 | 26.07% | 35% |
| Head of Household | $60,000 | $37,500 | $4,160 | 6.93% | 12% |
2025 standard deduction: $15,000 single, $30,000 MFJ, $22,500 head of household. Figures use federal brackets only (no state tax, credits, or payroll tax).
The U.S. income tax is progressive: income is sliced into brackets, and each slice is taxed at its own rate. Your marginal rate is the rate applied to your last (highest) dollar of taxable income. Your effective rate is total tax ÷ total income — the true average you pay.
Because the lower brackets still apply to your first dollars of income, the effective rate is always lower than the marginal rate for anyone above the lowest bracket. A single filer in the 22% bracket may pay an effective rate near 11%. The gap is not a loophole or an error — it is how graduated brackets are designed.
Many people move into a higher bracket and fear all their income is taxed at the new rate. It is not — only the dollars inside the new bracket are. Conversely, citing your effective rate to justify a Roth conversion understates the true cost, because the conversion lands on your top dollars.
If someone asks "what tax bracket are you in?", the marginal rate is the answer. If you want to know "how much of my income actually went to federal tax?", the effective rate is the answer. The two are frequently confused in headlines and political debate, where a top-bracket rate is applied rhetorically to all income. For a single filer earning $400,000, the marginal rate is 35% but the effective rate is about 26% — the difference is the entire lower-bracket structure doing its job.
The gap also reveals how much room you have for planning. If your marginal rate is 22% and the next bracket starts $10,000 above your taxable income, you can realize $10,000 of Roth conversions or capital gains at 22% before stepping up. Above that line, every additional dollar is taxed at 24%.
This calculator applies the 2025 federal ordinary-income brackets to taxable income after the standard deduction. Real returns also involve the standard-vs-itemized decision, above-the-line adjustments, tax credits (which reduce tax rather than income), the 3.8% net investment income tax, the additional Medicare tax on high wages, and state income tax. Use the result to plan bracket thresholds, then confirm the final figure on your actual return or with a preparer.
⚠️ Important: This calculator applies the 2025 federal ordinary-income brackets to taxable income after the standard deduction only. It does not model itemized deductions, tax credits, the alternative minimum tax, NIIT, additional Medicare tax, or state and local income tax. Results are estimates for planning and are not tax advice — consult a tax professional about your situation.