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Marginal tax rate calculator

Knowing your income tax rate can help you calculate your tax liability for unexpected income, retirement planning or investment income. This calculator helps you estimate your average tax rate for 2022-2023, your 2022-2023 tax bracket, and your marginal tax rate for the 2022-2023 tax year.

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Based on your filing status, incomes over $155,650 begin having their personal exemptions phased out. In addition, itemized deductions begin to be phased out at $155,650. The child tax credit of $1,000 per child begins to be phased out at $55,000. This increases your tax bill, and your marginal tax rate. For example, if you earn an additional $1,000 you will owe income taxes at a 0% marginal tax rate.

How should you use your average and marginal tax rates?

You should use your average tax rate when estimating your total tax liability for a year. For example, if you are planning your retirement and wish to estimate your tax liability for an entire year, you should use your average tax rate. Your marginal tax rate is useful when calculating taxes on additional income, such as the taxes on a windfall or a year end bonus. You can also use your actual tax bracket for these calculations, although it does not take the phase out of any tax deductions into account.

Definitions to know

Federal income tax rates

Use the table below to assist you in estimating your federal tax rate.

10% $0 to $10,275 $0 to $14,650 $0 to $20,550 $0 to $10,275
12% $10,276 to $41,775 $14,651 to $55,900 $20,551 to $83,550 $10,276 to $41,775
22% $41,776 to $89,075 $55,901 to $89,050 $83,551 to $178,150 $41,776 to $89,075
24% $89,076 to $170,050 $89,051 to $170,050 $178,151 to $340,100 $89,076 to $170,050
32% $170,051 to $215,950 $170,051 to $215,950 $340,101 to $431,900 $170,051 to $215,950
35% $215,951 to $539,900 $215,951 to $539,900 $431,901 to $647,850 $215,951 to $323,925
37% $539,901 or more $539,901 or more $647,851 or more $323,926 or more
Source: IRS

Wages, salaries, tips, etc.

This is your total taxable income for the year after deductions for retirement contributions such as 401(k)s, IRAs, etc. For tax filing purposes this would be the same as your Adjusted Gross Income (however the calculator is unable to take lower capital gains taxes into consideration).

Filing status

Your filing status determines the income levels for your Federal tax bracket. It is also important for calculating your standard deduction, personal exemptions, and deduction phase out incomes. There are five possible filing status choices. It is important to understand that your marital status as of the last day of the year determines your filing status.

Married filing jointly: If you are married, you are able to file a joint return with your spouse. If your spouse died during the tax year, you are still able to file a joint return for that year. You may also choose to file separately under the status "Married Filing Separately".

Qualified widow(er): Generally, you qualify for this status if your spouse died during the previous tax year (not the current tax year) and you and your spouse filed a joint tax return in the year immediately prior to their death. You are also required to have at least one dependent child or stepchild for whom you are the primary provider.

Single: If you are divorced, legally separated or unmarried as of the last day of the year you should use this status.

Head of household: This is the status for unmarried individuals that pay for more than half of the cost to keep up a home. This home needs to be the main home for the income tax filer and at least one qualifying relative. You can also choose this status if you are married, but didn't live with your spouse at anytime during the last six months of the year. You also need to provide more than half of the cost to keep up your home and have at least one dependent child living with you.

Married filing separately: If you are married, you have the choice to file separate returns. The filing status for this option is "Married Filing Separately".

For 2022, the standard deductions are $25,900 for married couples filing jointly and qualified widow(er), $12,950 for married couples filing separately and singles, and $19,400 for heads of household.

Dependents qualifying for child tax credit

You may be entitled to a child tax credit for each qualifying child who was under age 17 at the end of the year if you claimed an exemption for that child. The credit is, however, phased out at higher incomes.

Itemized deductions

This is the total of your itemized deductions that you can include on schedule A of your Federal income taxes. For most people this includes state income taxes paid for the year and interest on a mortgage. Other itemized deductions include certain investment expenses, medical expenses exceeding 7.5% of your adjusted gross income, and some moving expenses.

Your standard deduction will be automatically calculated for you based on the filing status and number of dependents you enter. If the number you enter here is lower, your standard deduction will be used to determine your average tax rate.