Effective Tax Rate Calculator
Find your effective (average) and marginal tax rate on an income in the US, UK, India, Canada, Australia or Singapore.
About the Effective Tax Rate Calculator
Your effective tax rate is total tax divided by income: the share you actually pay. It's always lower than your top bracket because lower slices of income are taxed at lower rates. The marginal rate is what you'd pay on an extra unit of income, useful for judging raises and deductions.
The formula
Effective rate = total tax ÷ income; marginal rate = Δ tax ÷ Δ income
Worked example
Example: Effective income tax rate = 8.7%
- Inputs: Country: United States (federal, single); Yearly income: $66,000.
- Formula: Effective rate = total tax ÷ income; marginal rate = Δ tax ÷ Δ income
- Result: Effective income tax rate = 8.7%
- All deductions: 16.35%
- Marginal (incl. contributions): 20%
Questions people ask
Why is my effective rate lower than my bracket?
Only income above each threshold is taxed at the higher rate.
Which rate matters for a raise?
The marginal rate tells you how much of the raise you keep.