Use this Effective Tax Rate Calculator to estimate what percentage of your income goes toward federal income tax. Enter your income, filing status, deductions, and tax credits to see your estimated federal tax, effective tax rate, and marginal tax rate.
Your effective tax rate is different from your tax bracket. Your tax bracket shows the rate applied to your next dollar of taxable income, while your effective tax rate represents your average federal income tax rate across your income.
This calculator uses 2026 federal income tax brackets and standard deductions. It is designed for a quick estimate and does not replace a complete federal tax return.
Tax Breakdown
What Your Rates Mean
What Is an Effective Tax Rate?
Your effective tax rate is the average percentage of your income that goes toward federal income tax.
It is different from your marginal tax rate. Your marginal rate is the tax rate that applies to the next dollar of taxable income, while your effective rate looks at your federal income tax across your income as a whole.
For example, someone may be in the 22% marginal tax bracket but have an effective federal income tax rate that is lower than 22%.
How to Calculate Your Effective Tax Rate
A simple way to calculate your effective federal income tax rate is:
Effective Tax Rate = Federal Income Tax ÷ Gross Income × 100
For example, if you earn $100,000 and your final federal income tax is $15,000:
$15,000 ÷ $100,000 × 100 = 15%
Your effective federal income tax rate would be 15%.
Effective Tax Rate vs. Marginal Tax Rate
These two rates are often confused.
Effective tax rate is the average percentage of your gross income that goes toward federal income tax.
Marginal tax rate is the rate applied to your next dollar of taxable income.
The U.S. federal income tax system uses progressive tax brackets. This means different portions of taxable income can be taxed at different rates. For 2026, federal individual income tax rates range from 10% to 37%, depending on taxable income and filing status.
What Is Taxable Income?
Taxable income is generally the amount of income left after applicable deductions and adjustments are taken into account.
Your gross income and taxable income are not necessarily the same number.
For 2026, the standard deduction is $16,100 for Single filers, $32,200 for Married Filing Jointly, $16,100 for Married Filing Separately, and $24,150 for Head of Household.
You may also qualify for additional deductions or adjustments depending on your situation.
2026 Federal Tax Brackets
For 2026, the federal income tax rates for individuals are 10%, 12%, 22%, 24%, 32%, 35%, and 37%.
Your entire income is not automatically taxed at the highest rate associated with your taxable income. Instead, different portions of taxable income fall into different tax brackets.
Example: $100,000 Income
Suppose a Single taxpayer earns $100,000 in 2026 and uses the $16,100 standard deduction.
A simplified calculation would be:
Gross income: $100,000
Standard deduction: $16,100
Estimated taxable income: $83,900
The federal tax is then calculated using the applicable 2026 tax brackets rather than applying one tax rate to the entire $83,900.
The resulting federal income tax divided by the $100,000 gross income produces the estimated effective tax rate.
Do Tax Credits Affect Your Effective Tax Rate?
Yes. Tax credits can directly reduce your federal income tax liability.
For example, if your estimated federal tax before credits is $15,000 and you qualify for $2,000 of applicable tax credits, your estimated tax after those credits would be $13,000.
That can reduce your effective tax rate.
Does This Calculator Include Social Security and Medicare Taxes?
No. This calculator estimates federal income tax.
It does not include Social Security tax, Medicare tax, state income tax, or local taxes. If you want to estimate the taxes taken from a paycheck, a Paycheck Calculator or Take-Home Pay Calculator is more appropriate.
Why Is My Effective Tax Rate Lower Than My Tax Bracket?
This is normal under a progressive tax system.
Your marginal tax bracket applies only to the portion of taxable income that falls within that bracket. Earlier portions of taxable income are taxed at lower rates.
As a result, your average or effective tax rate can be lower than your marginal tax rate.
Frequently Asked Questions
What is an effective tax rate?
An effective tax rate is the average percentage of income paid in federal income tax. It is generally lower than or equal to the taxpayer’s highest marginal tax rate.
How do I calculate my effective tax rate?
A simple calculation is:
Effective Tax Rate = Federal Income Tax ÷ Gross Income × 100
For example, $15,000 of federal income tax on $100,000 of gross income equals a 15% effective tax rate.
What is the difference between effective and marginal tax rates?
Your effective tax rate represents your average federal income tax rate across your gross income. Your marginal tax rate is the rate applied to your next dollar of taxable income.
What is the highest federal tax rate in 2026?
The highest federal individual income tax rate for 2026 is 37%. It applies to taxable income above the applicable threshold for each filing status.
Can my effective tax rate be lower than my tax bracket?
Yes. The U.S. federal income tax system is progressive, so different portions of taxable income can be taxed at different rates. Your effective rate therefore can be lower than your marginal rate.
Does the effective tax rate include Social Security and Medicare?
Not in this calculator. It estimates federal income tax only. Social Security and Medicare taxes are separate payroll taxes.
Does the calculator include the standard deduction?
Yes. The calculator automatically applies the 2026 standard deduction based on your selected filing status.
Do tax credits lower my effective tax rate?
They can. Tax credits directly reduce federal income tax liability when you qualify for them, which can lower the resulting effective tax rate.
Is this an effective tax rate calculator for the entire United States?
It estimates federal income tax. State and local income taxes are not included because tax rules vary between states and local jurisdictions.
Is this calculator accurate for filing my tax return?
It is designed for estimation and educational purposes. Your actual tax liability can be different because of deductions, credits, investment income, self-employment income, special tax rules, and other items on your tax return.
Disclaimer: This calculator provides an estimate of U.S. federal income tax and is not tax advice. Actual tax liability may vary based on your complete tax situation, deductions, credits, and other IRS rules. State and local taxes are not included.
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