Effective Tax Rate Calculator
Calculate your effective (average) tax rate based on actual taxes paid versus total income. Understand the real percentage of income going to taxes.
Your effective tax rate is the average rate you pay on all your income, which is usually lower than your marginal tax bracket. This calculator helps you understand what percentage of your total income actually goes to taxes.
Calculator
Common use cases
- Understanding your true tax burden
- Comparing tax efficiency year over year
- Financial planning
- Evaluating tax strategies
How to use
- Enter your total income (gross income)
- Enter the total taxes you paid
- View your effective tax rate
FAQ
What's the difference between effective and marginal tax rates?
Marginal rate is the rate on your last dollar earned. Effective rate is the average rate across all income.
Is a low effective rate always good?
It depends on context. A low rate might mean you're not earning much or you're using tax-advantaged strategies effectively.
What taxes should I include?
Include all income taxes (federal, state, local) for the most accurate effective rate.
This calculator provides illustrative estimates for planning purposes only and does not constitute financial, tax, or legal advice.