Marginal Tax Rate Calculator
Find the tax rate on your next unit of income, and what a raise is really worth.
Please note: A general estimate, not tax advice. Rates, bands, allowances and rules differ by country and change frequently. Enter the figures that apply to you and confirm with a qualified tax professional or your tax authority.
What the Marginal Tax Rate Calculator does
Your marginal rate is the tax on your next unit of income — the rate that matters when deciding whether extra work, a bonus or a deductible contribution is worthwhile. It is always at or above your effective rate.
Formula
Marginal rate = The rate of the highest band your income reachesTax on extra income = Tax(Income + Extra) − Tax(Income)
Inputs explained
| Input | Unit | Required | Notes |
|---|---|---|---|
| Current taxable income | selected currency | Yes | Accepts more than 0. |
| Bracket thresholds | text | Yes | The income level where each band starts. Always begin with 0. The greyed-out example shows the format only — it is not a current rate table for any country. |
| Bracket rates (%) | text | Yes | One rate per threshold, in the same order. Use the bands published by your own tax authority for the year you are calculating. |
| Additional income | selected currency | Optional | A raise, bonus or side income. Accepts 0 or more. |
| Currency | one of 10 options | Optional | — |
How to use it
- Choose Currency.
- Enter Current taxable income, Bracket thresholds and Bracket rates (%).
- Optionally add Additional income.
- Select Calculate.
Worked example
$70,000 taxable income with a $10,000 raise, brackets 0/11,000/44,725/95,375 at 10/12/22/24%.
- Income
- 70000
- Additional
- 10000
- Rates
- 10, 12, 22, 24
Marginal rate 22%, so the $10,000 raise costs $2,200 in tax and you keep $7,800.
Frequently asked questions
Can a raise ever leave me worse off?
Not from tax brackets themselves. It can happen where a benefit or subsidy cuts off sharply at an income threshold — a cliff, not a bracket.
Method and sources
Method. Identifies the band the income reaches and reports its rate — the tax on the next unit earned.
Assumptions
- The bands entered apply marginally and in ascending order.
Limitations
- The marginal rate applies only to the next unit of income, not to the whole. Confusing the two is the most common misreading of a progressive system, and it is why moving into a higher band never reduces take-home pay.
- The true marginal rate can exceed the band rate wherever an allowance or benefit withdraws as income rises — those withdrawals act as hidden extra rates and are not modelled.
- No rate table ships with this calculator: you supply the rates, so the result follows whichever jurisdiction and year you enter. That means it can never go silently out of date — but it also cannot warn you if the figures you entered are.
Sources
- Your own tax authority's published guidance for the relevant year — Varies by jurisdiction. The band thresholds, and any allowance taper that raises the effective marginal rate above the headline one.