{{ summaryHeading }} {{ summaryPrimary }} {{ summaryLine }} Tax {{ money(values.total_tax) }} Marginal {{ percent(values.marginal_rate_percent) }} Extra income {{ percent(values.scenario_incremental_rate_percent) }}
Built-in presets model only the ordinary or resident income slices named in their source notes.
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The ledger keeps other denominators visible so the selected rate has context.
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Example: 50000,10 then INF,20.
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%
Use zero to remove the scenario comparison.
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Keep zero for income tax and the selected payroll treatment only.
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This setting changes display rounding only.
Keep the schedule name with copied review notes.
MetricValueBasisCopy
{{ row.label }}{{ row.value }}{{ row.note }}
BandRateTaxed amountTaxCopy
{{ row.label }}{{ percent(row.rate_percent) }}{{ money(row.taxed_amount) }}{{ money(row.tax) }}

Included burden

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Extra-income scenario

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Model boundary

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Source version

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Before acting

Verify filing status, tax year, taxable-income construction, special income, reliefs, payroll coverage, credits, and local rules against the applicable return or a qualified adviser. This planning estimate does not file or determine tax liability.

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A tax bracket states the rate applied to one slice of taxable income. It does not state the share of total income paid in tax. That broader share is an effective tax rate, calculated by dividing an included tax total by a clearly named income base.

The denominator changes the story. Dividing by gross income answers how much of all income is represented by the selected taxes. Dividing by taxable or chargeable income removes deductions and reliefs from the base, so the percentage is normally higher. An adjusted or net-income denominator may be useful for a specific analysis, but it is comparable only when everyone uses the same definition.

RateQuestion it answersCommon misread
Effective rateWhat share of the selected income base is represented by included tax?Assuming the result includes every tax or uses gross income.
Marginal rateWhat rate applies to the next unit of taxable income under the selected schedule?Applying that rate to all income.
Incremental rateWhat share of an extra-income scenario becomes additional included tax?Treating it as a full return or withholding forecast.

Progressive tax schedules split taxable income across bands. Crossing a boundary normally changes the rate only on the slice above that boundary. Deductions reduce the amount exposed to the bands, while credits or rebates reduce tax after the bracket calculation. Payroll or social taxes may use a different base and their own caps or thresholds.

Two effective rates are comparable only when tax year, jurisdiction, filing status, income base, included taxes, credits, and period all match. A 20% income-tax-only rate cannot be compared directly with a 20% all-in rate that includes payroll and other taxes. The calculation also says nothing by itself about tax already withheld, balance due, filing eligibility, cash timing, or the legality of a deduction.

Tax rules change and often contain exceptions that a bracket schedule cannot capture. A useful estimate should always carry its year and scope, then be reconciled with a completed return, official worksheet, or qualified adviser before money is committed.

How to Use This Tool:

Choose the tax model and denominator before entering amounts; those two choices determine what the headline percentage means.

  1. Select Tax model for the applicable year, jurisdiction, and filing status. Use Custom progressive bracket table only when you have a verified schedule, or Manual completed-return totals when the tax amount is already known.
  2. Choose Income basis and Headline denominator. Enter gross and taxable or chargeable income on the same annual basis, including deductions or reliefs only where the chosen path expects them.
  3. Enter income tax, credits, and included taxes. Built-in presets calculate ordinary income tax; manual mode accepts the completed total. Add payroll or social tax only when it belongs in the comparison.
  4. Set Extra income scenario to the additional gross or taxable amount you want to test. Enter 0 when no side-income comparison is needed.
  5. Review the Rate ledger and source note. Confirm the denominator, included tax total, marginal rate, and bracket rows before using the headline result.

Interpreting Results:

  • Headline effective rate uses the denominator you selected. Name that denominator whenever the rate is copied into a budget or comparison.
  • Gross-income and taxable-income rates can differ even with the same tax total. The difference reflects the denominator, not another tax calculation.
  • Income-tax-only rate excludes payroll and other entered taxes but uses the selected headline denominator.
  • Marginal rate is the next progressive bracket rate or the rate entered in manual mode. It is not the average rate on all income.
  • Extra-income incremental rate compares additional included tax with the scenario amount. It may cross brackets, change a tapered allowance, or add payroll tax.

A precise percentage can still be wrong for the real return if the preset, residency, filing status, deductions, credits, income type, or included taxes are incomplete. Verify the selected source and reconcile the estimate with official filing figures.

Technical Details:

The calculation first determines taxable or chargeable income, applies each progressive band, subtracts entered credits up to the computed income tax, and then adds the selected payroll and other taxes. Money is rounded to cents at defined result boundaries; displayed whole-unit formatting does not change the underlying percentage.

Formula Core:

The effective rate is a ratio. Its meaning depends entirely on the tax numerator and income denominator carried with it.

Reffective=TincludedIbase×100%
Tincluded=max(0,Tbrackets−credits)+Tpayroll+Tother

For a progressive table, each band contributes only the income falling inside it:

Tbrackets=∑j=1n(max(0,min(Itaxable,Uj)−Lj)×rj)
TermMeaning
IbaseGross, taxable/chargeable, or adjusted income selected for the headline rate; must be greater than 0.
Uj, LjUpper and lower boundaries of bracket j.
rjRate applied only to the taxable slice inside bracket j.
TincludedNet income tax plus selected payroll/social tax and other entered tax.

Rule Core:

The built-in paths are deliberately narrow. U.S. 2026 presets model federal ordinary-income bands and the stated standard deduction. The optional employee FICA path applies 6.2% Social Security up to the $184,500 wage base, 1.45% Medicare without a wage cap, and 0.9% Additional Medicare Tax above the filing-status threshold. The UK path models 2026/27 non-savings, non-dividend rates for England, Wales, and Northern Ireland and reduces the £12,570 Personal Allowance by £1 for every £2 above £100,000.

PresetIncluded scopeImportant exclusions
U.S. federal 2026Ordinary-income brackets for four filing statuses; standard deduction; optional employee FICAEligibility, special deductions and credits, AMT, NIIT, self-employment tax, state and local tax
UK 2026/27 rUKNon-savings, non-dividend Income Tax and standard Personal Allowance taperScotland, National Insurance, savings, dividends, and special reliefs
Malaysia resident YA 2025Resident rates on chargeable incomeReliefs, rebates, zakat, PCB/MTD reconciliation, and non-resident treatment
Singapore resident YA 2026Resident rates on chargeable incomeResidency decisions, reliefs, rebates, CPF, and non-resident treatment

Custom bracket limits must increase, rates must remain from 0% through 100%, and the final row must be open-ended. The extra-income path reruns the same schedule and reports additional tax divided by the entered scenario income; a zero scenario returns 0% rather than dividing by zero.

Accuracy and Privacy Notes:

This estimate is educational planning, not tax, legal, or filing advice. Rules may change after the stated tax year, and individual facts can trigger provisions outside these presets. Check current official guidance and a completed return or qualified professional. Entries are calculated in the browser and are not sent to a tax authority or remote calculation service.

Worked Examples:

U.S. single filer with employee payroll tax

For $95,000 gross income, the 2026 single standard deduction produces $78,900 taxable income and $12,070 federal income tax under the modeled bands. Employee Social Security and Medicare add $7,267.50, so included tax is $19,337.50 and the gross-income effective rate is about 20.36%. The marginal ordinary-income rate is 22%, while a $10,000 extra-income scenario produces a 29.65% incremental included-tax rate because both income tax and payroll tax change.

References: