# What is my effective tax rate?

Works out your 2026 federal effective tax rate, the tax after credits as a percent of total income, next to your marginal tax bracket.

- Page: https://www.acalculator.org/finance/effective-tax-rate-calculator
- JSON spec: https://www.acalculator.org/finance/effective-tax-rate-calculator.json
- Version: 79b94e8fad8d

## Default answer

Example with the default inputs (Filing status Single, Wages $75,000.00, Federal tax withheld $0.00, Children under 17 0, Someone can claim me as a dependent No, Tax year 2,026): On $75,000.00 of income, filing Single, your effective federal tax rate is 10.23% and your marginal rate is 22%.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| status | Filing status | Federal filing status. |
| wages | Wages | Form W-2 box 1 wages, both spouses if joint. |
| withheld | Federal tax withheld | Federal tax withheld (W-2 box 2). |
| children | Children under 17 | Children under 17 with an SSN. |
| estimated | Estimated tax paid | Estimated tax paid for the year. |
| selfEmployment | Self-employment profit | Schedule C net profit. |
| interest | Taxable interest | Taxable interest (1099-INT). |
| dividends | Ordinary dividends | Form 1099-DIV box 1a. |
| qualifiedDividends | Qualified dividends | Form 1099-DIV box 1b. |
| shortTermGains | Short-term capital gains | Held a year or less; a loss is negative. |
| longTermGains | Long-term capital gains | Held over a year; a loss is negative. |
| otherIncome | Other income | Pensions, unemployment, taxable Social Security. |
| adjustments | Adjustments to income | IRA, HSA, student loan interest, and the like. |
| itemized | Itemized deductions | Schedule A total, used if above the standard deduction. |
| otherDependents | Other dependents | Dependents who are not children under 17. |
| over65 | People 65 or older | People on the return aged 65 or older. |
| blind | People who are blind | People on the return who are blind. |
| claimedAsDependent | Someone can claim me as a dependent | Limits the standard deduction. |
| year | Tax year | Later years use the latest rates. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| totalTax | Federal income tax | Form 1040 line 24. |
| balance | Refund or amount owed | Payments minus tax after credits; negative: you owe. |
| effectiveRate | Effective tax rate | Tax after credits over total income. |
| marginalRate | Marginal tax rate | Bracket rate on the next dollar. |
| agi | Adjusted gross income | Form 1040 line 11. |
| taxableIncome | Taxable income | Form 1040 line 15. |
| totalIncome | Total income | Form 1040 line 9. |
| deduction | Deduction taken | Standard or itemized, whichever is larger. |
| deductionType | Deduction type | Standard or itemized. |
| scheduleOneA | Senior deduction | $6,000 per person 65 or older (Schedule 1-A). |
| qbiDeduction | QBI deduction | Form 8995. |
| incomeTax | Tax on taxable income | Form 1040 line 16. |
| childTaxCredit | Child and other dependent credit | Form 1040 line 19. |
| selfEmploymentTax | Self-employment tax | Schedule SE tax. |
| otherTaxes | Additional Medicare and NIIT | Forms 8959 and 8960. |
| earnedIncomeCredit | Earned income credit | Refundable EIC. |
| netTax | Tax after refundable credits | Total tax less refundable credits. |
| at10 | Taxed at 10% | In the 10% bracket. |
| at12 | Taxed at 12% | In the 12% bracket. |
| at22 | Taxed at 22% | In the 22% bracket. |
| at24 | Taxed at 24% | In the 24% bracket. |
| at32 | Taxed at 32% | In the 32% bracket. |
| at35 | Taxed at 35% | In the 35% bracket. |
| at37 | Taxed at 37% | In the 37% bracket. |
| atCapitalGainsRates | At capital gains rates | Taxed at 0%, 15%, or 20%. |
| ratesYear | Rates of tax year | Year of the rates used. |
| notice | Note | Rates year or a limit left out. |

## Method

Form 1040 (2026): AGI = income − adjustments; taxable income = AGI − deduction − Schedule 1-A − QBI; tax by the Tax Table or rate schedule and capital gains rates − child tax credit + other taxes = total tax; refund = payments − (total tax − refundable credits).

## Assumptions

- An estimate for tax year 2026, not tax advice.
- Not modelled: AMT, the premium tax credit, education and other credits, QBI above the Form 8995 threshold, EIC for a separated spouse, the tips, overtime, and car loan deductions, taxable Social Security (type it as other income), 25% and 28% gains, and state tax.
- Everyone 65 or older has an SSN; children under 17 also qualify for the EIC; with no child, someone is 25 to 64.
- Self-employment profit belongs to the wage earner; QBI is profit less half of self-employment tax.

## Worked examples

1. status = single, wages = $75,000.00 gives netTax = $7,676.00, effectiveRate = 10.234667%, marginalRate = 22%.
2. status = mfj, wages = $150,000.00, children = 2 gives netTax = $10,940.00, effectiveRate = 7.293333%, marginalRate = 22%.
3. status = single, wages = $500,000.00 gives netTax = $140,834.25, effectiveRate = 28.16685%, marginalRate = 35%. Source: Rev. Proc. 2025-32 Table 3 and Form 8959.
4. status = hoh, wages = $30,000.00, children = 2 gives netTax = -$9,424.00, effectiveRate = -31.413333%, marginalRate = 10%.

## FAQ

### What is an effective tax rate?

It is your total federal tax divided by your total income. This page uses the tax after refundable credits (Form 1040 line 24 minus the earned income credit and the additional child tax credit) over total income (Form 1040 line 9). It tells you what share of your income goes to federal income tax.

### What is the difference between the effective and the marginal tax rate?

The marginal rate is the rate on your next dollar of taxable income: your tax bracket. The effective rate is the average over all your income. Because lower brackets and the standard deduction cover the first part of your income, the effective rate is always lower than the marginal rate for wage income.

### Why can my effective tax rate be negative?

Refundable credits, such as the earned income credit and the additional child tax credit, can be larger than your tax. The extra is paid to you, so your tax after credits is below zero and so is the rate.

### Is the effective rate the same as the average tax rate?

Yes, the two names mean the same thing. Some sources divide by taxable income or by AGI instead of total income; that gives a higher number. This page divides by total income, the broadest measure.

### Does it include Social Security, Medicare, or state tax?

It includes self-employment tax, the Additional Medicare Tax, and the net investment income tax, because they are on Form 1040. It does not include Social Security and Medicare withheld from wages, or state and local income tax.

### What does this calculator leave out?

The alternative minimum tax, the premium tax credit, education and other credits, the QBI deduction above the Form 8995 threshold, and the 25% and 28% capital gains rates. It is an estimate, not tax advice.

## Sources

- IRS, Rev. Proc. 2025-32 (Internal Revenue Bulletin 2025-45), section 4: 2026 tax rate tables, standard deduction, capital gains breakpoints, child tax credit, earned income credit. https://www.irs.gov/irb/2025-45_IRB
- IRS, 2025 Instructions for Form 1040: Tax Table, Tax Computation Worksheet, Qualified Dividends and Capital Gain Tax Worksheet, EIC Table. https://www.irs.gov/instructions/i1040gi
- IRS, Schedule 8812 (Form 1040), Credits for Qualifying Children and Other Dependents. https://www.irs.gov/pub/irs-pdf/f1040s8.pdf
- IRS, Schedule SE (Form 1040), Self-Employment Tax. https://www.irs.gov/pub/irs-pdf/f1040sse.pdf
- IRS, draft Schedule 1-A (Form 1040) 2026, Additional Deductions. https://www.irs.gov/pub/irs-dft/f1040s1a--dft.pdf
- IRS, Form 8959 (Additional Medicare Tax) and Form 8960 (Net Investment Income Tax) instructions. https://www.irs.gov/forms-pubs/about-form-8960