2026 Calculator
Effective Tax Rate Calculator 2026 - Effective vs Marginal Rate
Enter your gross income and filing status to see the share of your income that goes to federal income tax, your 2026 tax bracket, and why the two numbers differ.
Effective Tax Rate Calculator 2026 - Effective vs Marginal Rate
Your effective tax rate is your total federal income tax divided by your gross income. Your marginal tax rate is the bracket rate on your last dollar. This calculator uses the 2026 brackets and standard deduction to show both, how much of each bracket your income fills, and how pre-tax 401(k) and HSA contributions and the new tips, overtime and senior deductions change the result. For example, a single filer earning $75,000 is in the 22% bracket but pays $7,670 of federal income tax, an effective rate of 10.23%.
Effective vs Marginal Tax Rate: What Each Number Means
| Effective tax rate | Marginal tax rate | |
|---|---|---|
| Formula | Total federal income tax / gross income | Bracket rate on the last dollar of taxable income |
| Answers | What share of everything I earn goes to income tax? | How much of my next dollar goes to income tax? |
| Use it for | Your overall tax burden, comparing years | Raises, overtime, bonuses, extra 401(k) dollars |
| $75,000 single, 2026 | 10.23% | 22% |
The two numbers differ because federal income tax is progressive. The standard deduction is not taxed, and each bracket's rate applies only to the income inside that bracket. Your marginal rate is always at least as high as your effective rate.
How Your Income Fills the 2026 Tax Brackets
Picture each bracket as a bucket. Taxable income fills the 10% bucket first, then the 12% bucket, and so on. The calculator's bracket-fill bars show how full each bucket is for your income. Here is the full ladder for a single filer:
Effective Tax Rate at Each Bracket Boundary
What your effective rate is when your taxable income sits exactly at the top of each bracket, using the standard deduction only. Gross income = top of bracket + standard deduction.
Single
| Top of bracket | Taxable income | Gross income | Federal income tax | Effective rate |
|---|---|---|---|---|
| 10% | $12,400 | $28,500 | $1,240.00 | 4.35% |
| 12% | $50,400 | $66,500 | $5,800.00 | 8.72% |
| 22% | $105,700 | $121,800 | $17,966.00 | 14.75% |
| 24% | $201,775 | $217,875 | $41,024.00 | 18.83% |
| 32% | $256,225 | $272,325 | $58,448.00 | 21.46% |
| 35% | $640,600 | $656,700 | $192,979.25 | 29.39% |
Married filing jointly
| Top of bracket | Taxable income | Gross income | Federal income tax | Effective rate |
|---|---|---|---|---|
| 10% | $24,800 | $57,000 | $2,480.00 | 4.35% |
| 12% | $100,800 | $133,000 | $11,600.00 | 8.72% |
| 22% | $211,400 | $243,600 | $35,932.00 | 14.75% |
| 24% | $403,550 | $435,750 | $82,048.00 | 18.83% |
| 32% | $512,450 | $544,650 | $116,896.00 | 21.46% |
| 35% | $768,700 | $800,900 | $206,583.50 | 25.79% |
Even at the top of the 35% bracket, a single filer's effective rate is 29.39%. Income above that is taxed at 37%.
Worked Examples With 2026 Figures
Example 1: $75,000 salary, single, standard deduction
10% on $12,400 = $1,240.00
12% on $38,000 = $4,560.00
22% on $8,500 = $1,870.00
Federal income tax: $7,670.00
Effective rate: $7,670.00 / $75,000 = 10.23%; marginal rate: 22%
Example 2: same $75,000 salary with $6,000 to a 401(k) and $2,000 to an HSA
Taxable income: $50,900; federal income tax: $5,910.00
Effective rate: 7.88% (was 10.23%); marginal rate still 22%
Federal income tax saved: $1,760.00
Example 3: $60,000 including $15,000 of qualified tips, single
With the $15,000 tips deduction: taxable income $28,900, tax $3,220.00
Effective rate: 5.37%; marginal rate: 12%
The deduction does not reduce Social Security or Medicare on the tips.
Example 4: $150,000 household income, married filing jointly
Federal income tax: $15,340.00
Effective rate: 10.23%; marginal rate: 22%
What Lowers Your Effective Tax Rate
- Pre-tax contributions. Traditional 401(k) deferrals (up to $24,500 in 2026) and HSA contributions (up to $8,750 for family coverage) are left out of taxable wages.
- No tax on tips. Up to $25,000 of qualified tips a year can be deducted (IRC §224).
- No tax on overtime. The premium part of overtime pay, up to $12,500 ($25,000 joint), can be deducted (IRC §225).
- Senior deduction. $6,000 per person age 65 or older, on top of the regular additional standard deduction.
The tips and overtime deductions phase out by 10% of modified AGI above $150,000 ($300,000 joint). The senior deduction phases out by 6% above $75,000 ($150,000 joint). None of the three is available if you are married filing separately. The calculator uses your adjusted gross income as an estimate of modified AGI. For the details, use the no tax on tips calculator, the no tax on overtime calculator or the senior deduction calculator.
What This Calculator Leaves Out
- Payroll and state taxes. Social Security, Medicare and state income tax are not included. See the paycheck calculator.
- Credits such as the child tax credit, which reduce tax after the brackets are applied.
- Itemized deductions and capital gains, which are taxed on their own rate schedule.
For a full bracket-by-bracket federal estimate, use the federal income tax calculator. For the definitions, see effective vs marginal tax rate in the glossary.