Marginal Tax Rate Calculator
What the next dollar you earn is actually taxed at.
Enter your values
ⓘ Live results
Results
- Marginal rate
- 22%
- Tax on the extra income
- $1,320.00
- You keep from the extra
- $4,680.00
- Total tax
- $13,533.00
- Effective rate on all income
- 16.11%
- Tax before the raise
- $12,213.00
Quick answer
The marginal rate applies only to income above the bracket threshold, so a raise never reduces take-home pay — only the extra dollars are taxed higher.
Marginal tax = extra income × bracket rate
How to use the Marginal Tax Rate Calculator
- 1Enter your taxable income after deductions.
- 2Enter the raise or bonus you want to test.
- 3Adjust the bracket thresholds and rates to match your country or state.
Worked example
Using the values the calculator loads with:
Inputs
- Taxable income78000 $
- Extra income (raise or bonus)6000 $
- Bracket 1 ceiling11600 $
- Bracket 1 rate10 %
- Bracket 2 ceiling47150 $
- Bracket 2 rate12 %
- Bracket 3 ceiling100525 $
- Bracket 3 rate22 %
- Rate above bracket 324 %
Results
- Marginal rate22%
- Tax on the extra income$1,320.00
- You keep from the extra$4,680.00
- Total tax$13,533.00
- Effective rate on all income16.11%
- Tax before the raise$12,213.00
Frequently asked questions
Can a raise leave me worse off?
Not from income tax — only the income above a threshold is taxed at the higher rate. Benefit cliffs and student loan thresholds are the real risks.
What is the difference between marginal and effective rate?
Marginal is the rate on your next dollar; effective is total tax ÷ total income, and it is always lower.
About this calculator
- Built and reviewed by James Whitfield · How we build and test calculators
- Report an error
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.