What is marginal tax rate?

Your marginal tax rate is the tax rate applied to your last dollar of income. It's the percentage you'll pay on any additional income you earn. Because of progressive taxation, your marginal rate is always higher than your effective (average) rate.

Why does my marginal rate matter?

Your marginal rate determines the tax benefit of deductions and the tax cost of additional income. It helps with decisions like whether to contribute to traditional vs. Roth retirement accounts, timing income and deductions, and evaluating side income opportunities.

What are the 2024 federal tax brackets?

The 2024 federal brackets are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. For single filers, the 22% bracket starts at $47,150, 24% at $100,525, 32% at $191,950, and 35% at $243,725. The thresholds roughly double for married filing jointly.

Marginal Tax Rate Calculator - Free Tax Calculator

How to Use the Marginal Tax Rate Calculator

This free marginal tax rate calculator helps you quickly calculate marginal tax rate. Simply enter your values in the fields above and click "Calculate" to see your results instantly.

Understanding Your Results

After entering your information, the calculator will display your results including marginal tax rate, tax on additional income, current tax bracket, next bracket threshold. Each result is calculated using standard formulas used by financial professionals and experts in the field.

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