Tax Bracket Calculator

Your effective tax rate is the average rate you actually pay across all your income. It's calculated by dividing your total tax owed by your gross income. Because the U.S. tax system is progressive, your effective rate is always lower than your marginal rate.

For example, a single filer earning $85,000 in 2025 has a marginal rate of 22%, but their effective federal rate is roughly 11-13%. The effective rate gives you a more accurate picture of your true tax burden and is useful when comparing tax obligations across years or between different filing statuses.

The IRS adjusts tax brackets annually for inflation. For 2025, single filers have seven brackets: 10% ($0-$11,925), 12% ($11,926-$48,475), 22% ($48,476-$103,350), 24% ($103,351-$197,300), 32% ($197,301-$250,525), 35% ($250,526-$626,350), and 37% ($626,351+).

Married filing jointly brackets are roughly doubled: 10% up to $23,850, 12% up to $96,950, 22% up to $206,700, 24% up to $394,600, 32% up to $501,050, 35% up to $751,600, and 37% above that. Source: IRS Revenue Procedure 2024-40.

Tax deductions lower your taxable income, not your tax bill dollar-for-dollar. When you claim a deduction, you reduce the amount of income subject to tax. The actual tax savings depends on your marginal rate. A $1,000 deduction saves $220 if you're in the 22% bracket, but $370 in the 37% bracket.

Common deductions include the standard deduction ($15,000 for single filers, $30,000 for married filing jointly in 2025), mortgage interest, state and local taxes (capped at $10,000), charitable contributions, and retirement account contributions. Most taxpayers benefit more from the standard deduction than itemizing.

Take whichever deduction amount is larger to minimize your tax bill. For 2025, the standard deduction is $15,000 (single), $30,000 (married filing jointly), or $22,500 (head of household). Only itemize if your qualifying expenses exceed these amounts.

Common itemized deductions: mortgage interest, state/local taxes (SALT, capped at $10,000), charitable donations, and medical expenses exceeding 7.5% of AGI. Since the 2017 Tax Cuts and Jobs Act nearly doubled the standard deduction, roughly 87% of taxpayers now take the standard deduction. Use this calculator to compare both options and see which saves you more.