Marginal Tax Rate Calculator
What the next dollar you earn is actually taxed at.
Enter your values
Enter the taxable income in $.
Enter the extra income (raise or bonus) in $.
Enter the bracket 1 ceiling in $.
Enter the bracket 1 rate in %.
Enter the bracket 2 ceiling in $.
Enter the bracket 2 rate in %.
Enter the bracket 3 ceiling in $.
Enter the bracket 3 rate in %.
Enter the rate above bracket 3 in %.
Results update instantly as you type — no submit needed. Your values are remembered on this device, and the shareable link reopens the calculator with exactly these numbers.
- Marginal rate
- 22%
- Tax on the extra income
- $1,320.00
- You keep from the extra
- $4,680.00
- Total tax
- $13,533.00
- Effective rate on all income
- 16.11%
- Tax before the raise
- $12,213.00
Quick answer
The marginal rate applies only to income above the bracket threshold, so a raise never reduces take-home pay — only the extra dollars are taxed higher.
Marginal tax = extra income × bracket rate
At a glance
| What it does | What the next dollar you earn is actually taxed at. |
|---|---|
| Category | Finance |
| Inputs needed | Taxable income, Extra income (raise or bonus), Bracket 1 ceiling, Bracket 1 rate, Bracket 2 ceiling, Bracket 2 rate, Bracket 3 ceiling, Bracket 3 rate, Rate above bracket 3 |
| Main output | Marginal rate |
| Formula | Marginal tax = extra income × bracket rate |
| Cost | Free — no sign-up, no download |
How to use the Marginal Tax Rate Calculator
- 1Enter your taxable income after deductions.
- 2Enter the raise or bonus you want to test.
- 3Adjust the bracket thresholds and rates to match your country or state.
Inputs explained
- Taxable income($)
- Enter the taxable income in $.
- Extra income (raise or bonus)($)
- Enter the extra income (raise or bonus) in $.
- Bracket 1 ceiling($)
- Enter the bracket 1 ceiling in $.
- Bracket 1 rate(%)
- Enter the bracket 1 rate in %.
- Bracket 2 ceiling($)
- Enter the bracket 2 ceiling in $.
- Bracket 2 rate(%)
- Enter the bracket 2 rate in %.
- Bracket 3 ceiling($)
- Enter the bracket 3 ceiling in $.
- Bracket 3 rate(%)
- Enter the bracket 3 rate in %.
- Rate above bracket 3(%)
- Enter the rate above bracket 3 in %.
Worked example
Using the values the calculator loads with:
Inputs
- Taxable income78000 $
- Extra income (raise or bonus)6000 $
- Bracket 1 ceiling11600 $
- Bracket 1 rate10 %
- Bracket 2 ceiling47150 $
- Bracket 2 rate12 %
- Bracket 3 ceiling100525 $
- Bracket 3 rate22 %
- Rate above bracket 324 %
Results
- Marginal rate22%
- Tax on the extra income$1,320.00
- You keep from the extra$4,680.00
- Total tax$13,533.00
- Effective rate on all income16.11%
- Tax before the raise$12,213.00
Frequently asked questions
Can a raise leave me worse off?
Not from income tax — only the income above a threshold is taxed at the higher rate. Benefit cliffs and student loan thresholds are the real risks.
What is the difference between marginal and effective rate?
Marginal is the rate on your next dollar; effective is total tax ÷ total income, and it is always lower.
What do I need to enter into the Marginal Tax Rate Calculator?
Just 9 values: taxable income, extra income (raise or bonus), bracket 1 ceiling, bracket 1 rate, bracket 2 ceiling, bracket 2 rate, bracket 3 ceiling, bracket 3 rate, rate above bracket 3. Every field starts with a realistic example, so you can change one number at a time and watch the result update instantly.
How does the Marginal Tax Rate Calculator work out the answer?
The marginal rate applies only to income above the bracket threshold, so a raise never reduces take-home pay — only the extra dollars are taxed higher. It applies the formula Marginal tax = extra income × bracket rate and shows the working so you can check each step by hand.
Is the Marginal Tax Rate Calculator free, and do I need an account?
It is completely free with no sign-up, no download and no usage limit. Everything is calculated in your browser, so the numbers you type never leave your device.
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.