Calculate your effective and marginal tax rate. Covers US Federal, UK PAYE and EU with full take-home breakdown.
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Part of a topic cluster
This page is part of our Complete Tax Guide 2026 — a complete guide covering every aspect of this topic.
Tax owed
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Effective rate
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Marginal rate
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Monthly take-home
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Annual take-home
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Top bracket
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How the tax estimation formula works
For US filers, the calculator applies the 2026 federal tax brackets progressively: each portion of income is taxed at the rate for that bracket only, not your entire income at the top rate. Self-employment tax (15.3% on the first $168,600) and an estimated 5% state tax are added separately.
US 2026 standard deduction: $16,100 (single) | $32,200 (married filing jointly) | $24,300 (head of household). Taxable income = gross income − deductions − standard deduction.
For UK filers, the calculator applies income tax bands (20% / 40% / 45%) plus National Insurance (8% on earnings £12,570–£50,270, then 2% above). For the EU estimate, a blended effective rate model is used.
Worked example with real numbers
US single filer | Gross income: $95,000 | Additional deductions: $3,000 | Filing status: Single
Step
Calculation
Amount
Gross income
—
$95,000
Minus deductions
$16,100 standard + $3,000
−$19,100
Taxable income
$95,000 − $19,100
$75,900
10% bracket (up to $11,600)
$11,600 × 10%
$1,160
12% bracket ($11,601–$47,150)
$35,550 × 12%
$4,266
22% bracket ($47,151–$75,900)
$28,750 × 22%
$6,325
FICA (SS + Medicare)
$95,000 × 7.65%
$7,268
Est. state tax
$95,000 × 5%
$4,750
Total tax
All combined
~$23,769
Effective rate
$23,769 ÷ $95,000
25.0%
Common mistakes to avoid
Confusing marginal and effective rate. If you earn $95,000, you are in the 22% bracket — but your effective rate is around 25% including FICA, not 22%. The marginal rate only applies to the last slice of income.
Forgetting deductions. The standard deduction removes a large chunk from taxable income. If you have significant mortgage interest, charitable donations, or medical expenses, itemising may beat the standard deduction.
Ignoring self-employment tax. Freelancers and contractors pay both the employee and employer halves of FICA (15.3% on the first $168,600). The calculator adds this for you, but it catches many self-employed workers off guard.
Using gross income to plan spending. Your take-home pay after federal tax, state tax, and FICA on $95,000 is roughly $71,000 — about 25% less than gross. Always plan budgets from net income.
Ignoring the AMT for high earners. The Alternative Minimum Tax can apply above roughly $137,000 for single filers. If you are in this range, consult a tax professional for accurate planning.
Single filer 2026: 10% up to $11,600; 12% to $47,150; 22% to $100,525; 24% to $191,950; 32% to $243,725; 35% to $609,350; 37% above.
What is the difference between effective and marginal rate?
Marginal rate is the rate on your last dollar. Effective rate is total tax divided by total income. Most people in the 22% bracket pay an effective rate of 13-15%.
How can I legally reduce my taxable income?
Max out your 401(k), contribute to an HSA, use an FSA, and consider traditional IRA contributions. Each reduces your taxable income directly.