Effective Tax Rate Calculator
Calculate your effective (average) tax rate vs. your marginal tax rate from your annual income.
Effective vs Marginal Tax Rate
Effective Tax Rate
17.1%
Average rate on all income
Marginal Tax Rate
22%
Rate on last dollar earned
Total Tax
$17,053
Formula
Effective Rate = Total Tax Paid ÷ Gross Income × 100
Example: $100K income, $18,021 tax → 18.0% effective rate, 22% marginal rate
Frequently Asked Questions
What is the difference between effective and marginal?
Effective rate is your average rate across all income. Marginal rate is the rate applied to each additional dollar.
Why does the marginal rate feel high?
The marginal rate only applies to income in the highest bracket, not your entire income.