Marginal Tax Rate
Your marginal tax rate is the rate you pay on your last dollar of income — the tax bracket your top dollar falls into. Because the US uses progressive brackets, it's higher than your effective (average) rate: moving into a higher bracket only taxes the income above that threshold, never your whole income.
This is the number for decisions at the edge, because a deduction saves tax at your marginal rate rather than your average one: a $7,500 pre-tax contribution in the 22% bracket cuts the bill by $1,650, so the contribution costs $5,850 of take-home pay. It is also the rate to use when judging overtime, a bonus, or a side income, since those dollars stack on top of everything else. Two things push your true marginal rate above your federal bracket: state income tax, which adds directly on top, and income-based phase-outs of credits and deductions, which can make an extra dollar cost more than the bracket alone implies.
Put it to work
Federal Income Tax Calculator
Estimate your 2026 federal income tax: total tax, effective and marginal rates, and a bracket-by-bracket breakdown using official IRS figures.
Take-Home Pay Calculator
See your actual paycheck after federal tax, Social Security, Medicare, 401(k), health premiums, and state tax — per paycheck and per year (2026 figures).
Traditional IRA Calculator
Project your traditional IRA at retirement, see this year's tax deduction, and estimate the tax you'll owe on withdrawals. Uses the 2026 limit of $7,500.