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Calculate your 2025 federal income tax. See marginal vs effective rates and tax owed by bracket.
The U.S. uses progressive tax brackets—you don't pay your marginal rate on all income, only on income above each threshold. Understanding this difference between marginal and effective rates is key to tax planning.
Before taxes and deductions
Standard: $15,000
Federal Tax Owed
$10,314
Effective Rate
12.1%
Actual tax burden
Marginal Rate
22%
Top bracket
After-Tax Income
$74,686
Monthly Take-Home
$6,224
$10,314
12.1% effective rate
22%
Your top tax bracket
$74,686
Annual
$6,224
Before other deductions
10% Bracket
$0–$11,925
was $0–$11,600
Standard (Single)
$15,000
was $14,600
Standard (Married)
$30,000
was $29,200
Top Rate Starts
$626,350
was $609,350
Source: IRS Revenue Procedure 2024-40
A typical middle-income earner filing single
Apply standard deduction
$85,000 - $15,000 = $70,000 taxable= $70,000
Calculate tax in 10% bracket
$11,925 × 10% = $1,192.50= $1,192.50
Calculate tax in 12% bracket
($48,475 - $11,925) × 12% = $4,386= $4,386
Calculate tax in 22% bracket
($70,000 - $48,475) × 22% = $4,735.50= $4,735.50
Result:
$10,314 federal tax (12.1% effective rate)
“Finally understood why my effective rate is so much lower than my bracket. This breakdown is exactly what I needed for tax planning.”
— Michael R., California
Learn more about how we calculate and our editorial standards.