Marginal Tax Rate Calculator

The marginal rate is the rate of the bracket your taxable income falls in. The next dollar is taxed at that rate until your income crosses the bracket’s upper threshold, where the next-higher rate begins.

The rate on your next dollar

Your marginal tax rate is the rate that applies to the next dollar you earn — the bracket your top dollar sits in. It is the number that matters for any “is it worth it?” decision at the edge: a raise, an extra shift, a bonus, a Roth conversion, or a deductible contribution. If you are in the 22% bracket, an extra $1,000 of income costs $220 in federal tax (until that income crosses into the 24% bracket). It is not the rate you pay on all your income — that is the effective rate, which is lower — but it is the rate on anything more you earn or anything you can deduct.

Worked example — $75,000 taxable, single, 2025: You’re in the 22% bracket ($48,475 – $103,350), so your marginal rate is 22%. Your effective rate is only about 15.2% — and you’d need $28,350 more income to reach the 24% bracket.

How close are you to the next bracket?

Knowing the distance to the next bracket is useful for timing income and deductions. If you are near the top of a bracket, deferring a bonus or making a pre-tax contribution can keep that income in the lower band; if you have room before the next threshold, you might accelerate income or do a Roth conversion to “fill up” the current bracket cheaply. The calculator shows exactly how much more taxable income would tip you into the next rate, and — with the extra-income field — the actual tax on a specific raise or windfall, correctly spanning the next bracket if the amount crosses it.

Marginal vs effective, and adding state

The marginal rate is always higher than the effective (average) rate, because your earlier income is taxed in the lower brackets first — the calculator shows both so the contrast is clear. For decisions, use the marginal rate; to describe your overall burden, use the effective rate. If your state has an income tax, add its marginal rate under the advanced options for a combined marginal rate — the true cost of your next dollar. Note this covers federal (and optional state) income tax only; payroll taxes can add to the marginal cost of wage income up to the Social Security wage base.