Tax Calculator
Income tax from the brackets you enter, with effective and marginal rates, or sales tax and VAT added or removed.
Your tax
Filled in with example values. Replace them with your own.
Tax brackets
Currency symbol
Results update as you type.
Result
Tax $8,250.00 on income $55,000.00: effective rate 15%, marginal rate 25%
Estimated tax
$8,250.00
- After tax
- $46,750.00
- Effective rateTax ÷ income
- 15%
- Marginal rateOn the next unit you earn
- 25%
By bracket
- $0.00 – $10,000.00 at 0%$0.00on $10,000.00
- $10,000.00 – $30,000.00 at 10%$2,000.00on $20,000.00
- $30,000.00 and above at 25%$6,250.00on $25,000.00
Your income
- After tax
- $46,750.00
- Tax
- $8,250.00
- Income
- $55,000.00
Important
This calculator does not know any country’s tax rules. It applies the brackets and rate you enter. For a real tax figure, use the official brackets for your country and tax year, and check with your tax authority or an adviser: allowances, credits and other rules can change the result.
How the tax calculator works
For income tax, enter your income, any deductions, and the tax brackets: where each bracket starts and its rate. Each slice of taxable income is taxed at its own bracket’s rate, and the slices are added up. For sales tax or VAT, enter a price and the rate to add tax, or to take it out of a price that already includes it.
The formulas
Taxable income = Income − Deductions
Tax = Σ (income inside each bracket × that bracket’s rate)
Add tax: Tax = Price × Rate
Remove tax: Before tax = Price ÷ (1 + Rate)
Worked example
With made-up brackets of 0% up to 10,000, 10% from 10,000 and 25% from 30,000, on an income of 55,000:
- 0 on the first 10,000; 10% of the next 20,000 = 2,000; 25% of the last 25,000 = 6,250
- Total tax 8,250: an effective rate of 15%, a marginal rate of 25%
- A price of 120 including 20% VAT is 100 before tax and 20 tax.
Frequently asked questions
Why are no tax rates built in?
Income tax depends on the country, the tax year and your circumstances, and the rules change. Rather than show rates that could be out of date or wrong for you, the calculator works with the brackets you enter from your tax authority.
What is the difference between the marginal and the effective rate?
The marginal rate is what you pay on the next unit of income: the rate of your highest bracket. The effective rate is your total tax divided by your income, which is lower because the first part of your income is taxed at lower rates.
Does moving into a higher bracket mean all my income is taxed more?
No. With progressive brackets, only the part of your income inside the higher bracket is taxed at the higher rate. Everything below stays taxed as before.
How do I take VAT or sales tax out of a price?
Divide the price by 1 plus the rate. A price of 120 with 20% tax included is 120 ÷ 1.2 = 100 before tax, so the tax is 20, not 20% of 120 (24).