After-Tax Income Calculator
Take-home income.
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Tax
Effective Tax Rate Calculator
Find the share of your income that actually goes to tax.
Effective tax rate
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Overall rate.
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How the Effective Tax Rate Calculator Works
Your effective tax rate is the share of your total income that actually goes to tax: total tax paid divided by total income. Pay $12,000 on $75,000 of income and your effective rate is 16%. It’s lower than your top (marginal) bracket, because only the income in the highest bracket is taxed at that rate — the rest is taxed less.
Effective rate is the honest measure of your tax burden and the right one for comparing years or scenarios. It blends every bracket, deduction and credit into one number.
effective tax rate = total tax ÷ total income × 100
Frequently Asked Questions
How do you calculate effective tax rate?
Divide the total tax you paid by your total income and multiply by 100. $12,000 on $75,000 is 16%.
What is the difference from marginal rate?
Marginal rate is the tax on your last dollar (your top bracket); effective rate is the average across all your income, and it’s lower.
Why is my effective rate lower than my bracket?
Because progressive brackets tax only the income within each band at that band’s rate, not all your income.
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