Marginal Tax Rate Calculator

Knowing your income tax rate can help you calculate your tax liability for unexpected income, retirement planning or investment income. This calculator helps you estimate your average tax rate for 2014, your 2014 tax bracket, and your marginal tax rate for the 2014 tax year.

Your marginal income tax rate is estimated at MARGINAL_TAX_RATE for 2014.

Your average tax rate is AVERAGE_TAX_RATE of your total income of LINE_7_WAGES_SALARIES_TIPS_ETC. Your income puts you in the BRACKET_TAX_RATE tax bracket. Your total federal income taxes are estimated at LINE_56_TOTAL_TAX. **GRAPH**
Your Income Tax Rates
Marginal tax rateMARGINAL_TAX_RATE
Average tax rateAVERAGE_TAX_RATE
Income tax bracketBRACKET_TAX_RATE

Based on your filing status, incomes over EX_START_PHASE_OUT begin having their personal exemptions phased out. In addition, itemized deductions begin to be phased out at ITEMIZED_REDUCTION_STARTS. The child tax credit of CHILD_TAX_CREDIT_AMT per child begins to be phased out at CHILD_TAX_PHASE_OUT. This increases your tax bill, and your marginal tax rate. For example, if you earn an additional MARGINAL_TAX_INCREMENT you will owe income taxes at a MARGINAL_TAX_RATE marginal tax rate.

How should you use your average and marginal tax rates?

You should use your average tax rate when estimating your total tax liability for a year. For example, if you are planning your retirement and wish to estimate your tax liability for an entire year, you should use your average tax rate. Your marginal tax rate is useful when calculating taxes on additional income, such as the taxes on a windfall or a year end bonus. You can also use your actual tax bracket for these calculations, although it does not take the phase out of any tax deductions into account.

Tax Calculation Summary

Tax Calculation Summary
Wages, salaries, tips, etcLINE_7_WAGES_SALARIES_TIPS_ETC
Filing statusLINE_1_FILING_STATUS
Personal exemptionLINE_6A_PERSONAL_EXEMPTION
Spouse exemptionLINE_6B_SPOUSE_EXEMPTION
Number of additional dependentsLINE_6C_DEPENDANTS
Dependents qualifying for child tax creditLINE_6C_DEPENDANTS_QUALIFYING_FOR_CHILD_TAX_CREDIT
Itemized deductions LINE_36_ITEMIZED_DEDUCTIONS
Itemized deductions after phase out
( for LINE_1_FILING_STATUS Filers with incomes over ITEMIZED_REDUCTION_STARTS.)
ADJUST_ITEMIZED_DEDUCTIONS
Standard deductionLINE_36_STANDARD_DEDUCTION
Deduction to use
(higher of itemized deductions and standard deduction)
LINE_36_DEDUCTION_TO_USE
Deduction for exemptions
(including phase out for LINE_1_FILING_STATUS Filers with incomes over EX_START_PHASE_OUT.)
LINE_38_DEDUCTION_FOR_EXEMPTIONS
Taxable incomeLINE_39_TAXABLE_INCOME
Child tax credit
(including phase out for LINE_1_FILING_STATUS Filers with incomes over CHILD_TAX_PHASE_OUT.)
LINE_43_CHILD_TAX_CREDIT
Additional child tax credit (refundable)
ADDITIONAL_CHILD_TAX_CREDIT
Medicare tax sur-tax on earned incomeMEDICARE_INCOME_SURTAX (MEDICARE_INCOME_RATE X MEDICARE_INCOME_AMT)
Total taxLINE_56_TOTAL_TAX

Marginal Tax Rate Calculator Definitions

Federal Income Tax Rates
Use the table below to assist you in estimating your Federal 2014 tax rate.
Filing Status and Income Tax Rates 2014*
Tax RateMarried Filing Jointly or Qualified Widow(er)SingleHead of HouseholdMarried Filing Separately
10%$0 - $18,150$0 - $9,075$0 - $12,950$0 - $9,075
15%$18,150 - $73,800$9,075 - $36,900$12,950 - $49,400$9,075 - $36,900
25%$73,800 - $148,850$36,900 - $89,350$49,400 - $127,550$36,900 - $74,425
28%$148,850 - $226,850$89,350 - $186,350$127,550 - $206,600$74,425 - $113,425
33%$226,850 - $405,100$186,350 - $405,100$206,600 - $405,100$113,425 - $202,550
35%$405,100 - $457,600$405,100 - $406,750$405,100 - $432,200$202,550 - $228,800
39.6%over $457,600over $406,750over $432,200over $228,800
*Caution: Do not use these tax rate schedules to figure 2013 taxes. Use only to figure 2014 estimates. Source: 2014 tax brackets http://www.irs.gov
Wages, salaries, tips, etc.
This is your total income for the year. To keep things simple this calculator assumes this is your net income, after deductions for retirement contributions such as 401(k)s, IRAs, etc.
Filing status
Choose your filing status. Your filing status determines the income levels for your Federal tax bracket. It is also important for calculating your standard deduction, personal exemptions, and deduction phase out incomes. The table below summarizes the five possible filing status choices. It is important to understand that your marital status as of the last day of the year determines your filing status.

Filing Status
Married Filing Jointly If you are married, you are able to file a joint return with your spouse. If your spouse died during the tax year, you are still able to file a joint return for that year. You may also choose to file separately under the status "Married Filing Separately".
Qualified Widow(er) Generally, you qualify for this status if your spouse died during the previous tax year (not the current tax year) and you and your spouse filed a joint tax return in the year immediately prior to their death. You are also required to have at least one dependent child or stepchild for whom you are the primary provider.
Single If you are divorced, legally separated or unmarried as of the last day of the year you should use this status.
Head of Household This is the status for unmarried individuals that pay for more than half of the cost to keep up a home. This home needs to be the main home for the income tax filer and at least one qualifying relative. You can also choose this status if you are married, but didn't live with your spouse at anytime during the last six months of the year. You also need to provide more than half of the cost to keep up your home and have at least one dependent child living with you.
Married Filing Separately If you are married, you have the choice to file separate returns. The filing status for this option is "Married Filing Separately".

For 2014, the standard deductions are $12,400 for married couples filing jointly, $6,200 for married couples filing separately and singles, and $9,100 for heads of household.

Are you someone's dependent?
Choose 'no' if no one can claim you or your spouse as a dependent. Choose 'yes' if someone can claim you as a dependent. Choose 'both you and your spouse if you both are dependents. (You are a dependent if someone supports you and can claim a dependency exemption for you.)
Number of additional dependents
A dependent is someone you support and for whom you can claim a dependency exemption. In 2014, each dependent you claim entitles you to receive a $3,950 reduction in your taxable income.
Dependents qualifying for child tax credit
You may be entitled to a child tax credit for each qualifying child who was under age 17 at the end of the year if you claimed an exemption for that child. The credit is, however, phased out at higher incomes.
Itemized deductions
This is the total of your itemized deductions that you can include on schedule A of your Federal income taxes. For most people this includes state income taxes paid for the year, interest on a mortgage and any charitable contributions. Other itemized deductions include certain investment expenses, medical expenses exceeding 7.5% of your adjusted gross income, and some moving expenses.

Your standard deduction will be automatically calculated for you based on the filing status and number of dependents you enter. If the number you enter here is lower, your standard deduction will be used to determine your average tax rate.



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