Calculator
2025 & 2026 Federal Tax Brackets

Effective Tax Rate Calculator 2026

Enter your income and filing status. See your effective tax rate — what you actually pay as a percentage of income — plus your marginal rate, total tax, and a full bracket-by-bracket breakdown.

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$

401(k), IRA, HSA contributions, itemized deductions above standard deduction, etc.

Effective Rate
10.6%
of gross income
Marginal Rate
22%
top bracket
Total Tax
$7,961
Deductions
$15,300
Take Home
$67,039
Tax 10.6%Take Home 89.4%
Bracket-by-Bracket Breakdown
Taxable income: $59,700 (after $15,300 deduction)
10%on $12,150
$1,215
12%on $37,149
$4,458
22%on $10,399
$2,288
Key insight: Your effective rate (10.6%) is 11.4% lower than your marginal rate (22%) because only income above each bracket threshold is taxed at the higher rate.

Your effective rate is always lower than your marginal rate

Many people panic when they see they're in the 22% bracket. But that 22% only applies to the portion of income above $49,300. Every dollar below that threshold is taxed at 10% or 12%.

That's the beauty of a progressive tax system. Your effective rate — the average across all your income — tells the real story.

Example: $100,000 income, single filer (2026)
10% on $0 – $12,150$1,215
12% on $12,151 – $49,300$4,458
22% on $49,301 – $84,700$7,788
Total tax$13,461
Effective rate13.5%
Marginal rate is 22% — effective rate is 13.5%. That's an 8.5% gap.

The formula is simple

Effective Rate =
Total Tax Paid
Total Gross Income

Apply the progressive bracket rates to each portion of taxable income, sum them up, then divide by gross income. Our calculator does this instantly with 2025 or 2026 brackets.

Step-by-step calculation guide

Learn more about your taxes

How to Calculate

Step-by-step formula with worked examples

Marginal vs Effective

Clear explanation with bracket staircase visual

Rates by Income

What Americans at every income level actually pay

Frequently Asked Questions

What is an effective tax rate?

Your effective tax rate is the percentage of your total income that you actually pay in federal income tax. It is calculated by dividing total tax paid by total gross income. Because the US uses a progressive tax system, your effective rate is always lower than your marginal (top bracket) rate.

How is effective tax rate different from marginal tax rate?

Your marginal tax rate is the rate applied to your last dollar of income — your top bracket. Your effective tax rate is the average across all your income. For example, if you earn $100,000 as a single filer in 2026, your marginal rate is 22% but your effective rate is roughly 13.4% because lower income portions are taxed at 10% and 12%.

What are the 2026 federal tax brackets?

The 2026 federal tax brackets for single filers are: 10% on $0–$12,150; 12% on $12,151–$49,300; 22% on $49,301–$105,150; 24% on $105,151–$200,750; 32% on $200,751–$254,800; 35% on $254,801–$636,350; 37% on $636,351 and above.

How can I lower my effective tax rate?

You can lower your effective tax rate by increasing pre-tax contributions to a 401(k), IRA, or HSA, which reduce your taxable income. Other strategies include tax-loss harvesting, charitable donations, and claiming all eligible deductions. Each $1,000 in deductions saves you money equal to your marginal rate × $1,000.

Does the effective tax rate calculator include state taxes?

This calculator covers federal income taxes only. State income taxes vary significantly — from 0% in states like Texas and Florida to over 13% in California. For a complete after-tax picture, add your state's effective rate to the federal rate shown here.