Marginal Tax Bracket Calculator

How it is calculated

You supply the tax schedule yourself, so the tool is not tied to any country or year. The first limit is where bracket 1 ends and the second limit is where bracket 2 ends, both measured from zero income; bracket 3 has no ceiling. The tax is min(income, limit 1) × rate 1 + (min(income, limit 2) − limit 1) × rate 2 + (income − limit 2) × rate 3, with each part counted only when income reaches that bracket and rates divided by 100. Effective rate is total tax ÷ income × 100. Marginal rate is the rate of the bracket holding your last dollar; income exactly at a limit still counts as the lower bracket. The tool gives no result for negative income or limits, for limit 2 below limit 1, or for any rate below 0% or above 100%. Use the real brackets for your country and tax year.

Common mistakes

• Applying the top rate to all income. Only the slice above the last limit is taxed at 32% here; the effective rate is 22.30%.
• Entering the width of each bracket instead of where it ends. The second limit is 45000, not 34000, because both limits are counted from zero.
• Typing the rates as decimals (0.22). The fields expect percentages, so 0.22 means 0.22% and the tax shrinks to a hundredth.
• Entering gross pay when the brackets apply to taxable income after deductions. The tool taxes exactly the income you give it.
• Entering a second limit that is lower than the first, or a rate above 100. Both are rejected and show no result.