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, your tax bracket, and your marginal tax rate for the current tax year.
Marginal Tax Rate Calculator (Tax Year 2017)
Marginal Tax Rate Calculator (Tax Year 2017) Definitions
- Federal Income Tax Rates
- Wages, salaries, tips, etc.
- This is your total taxable income for the year after deductions for retirement contributions such as 401(k)s, IRAs, etc. For tax filing purposes this would be the same as your Adjusted Gross Income (however the calculator is unable to take lower capital gains taxes into consideration).
- 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 2017, the standard deductions are: **STANDARDDEDUCTION_TAXYEAR_DEFINITION**
- 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 2017, each dependent you claim entitles you to receive a $4,050 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.
- Standard deduction
- Your standard deduction is used to reduce your taxable income if you do not use Schedule A to itemize your deductions, or if your Schedule A itemized deduction is less than your standard deduction. Your standard deduction is based on your filing status. For 2017, the standard deductions are: **STANDARDDEDUCTION_TAXYEAR_DEFINITION**
- Medical and dental expenses
- Enter your qualified medical and dental expenses for the year. This can include your health insurance premiums if you paid for them yourself (not through an employer sponsored plan) and you have not deducted them elsewhere. Your actual deduction is only for the amount that exceeds 7.5% of your Adjusted Gross Income (AGI). Enter your total expenses and we will calculate the actual deduction based on your AGI.
- Taxes paid (generally state and local)
- Enter the total of your 1) state and local property taxes and 2) state and local income taxes. If your state does not have an income tax (or you have paid more sales tax than income tax during the year) you can choose to include state local sales taxes instead of state and local income taxes.
- Interest paid
- Enter the total interest paid for a home mortgage and certain investment interest. Mortgage interest is report on form 1098. You can also include them amount you paid for 'points' (which reduces your mortgage interest rate) and any mortgage insurance premiums paid for mortgages issued after December 31st, 2006 (also reported on form 1098). You should also include any interest allocated to money you borrowed for investment purposes (form 4952).
- Gifts to charity
- Enter your total gifts of cash and non-cash to qualified charitable organizations.
- Casualty and theft losses
- Enter your total unreimbursed loss from theft, vandalism, fire, storms, corrosive drywall, etc. Your total allowed loss is reduced by $100 for each loss incident. Your actual deduction is only for the amount that exceeds 10% of your Adjusted Gross Income (AGI). Enter the total loss that qualifies and we will calculate the actual deduction based on your AGI.
- Job and misc. expenses
- Enter the total of unreimbursed employee expenses (from see Publication 52 for details), tax preparation expense and certain other expenses (see Schedule A instructions). Your actual deduction is only for the amount that exceeds 2% of your Adjusted Gross Income (AGI). Enter the total expense amount and we will calculate the actual deduction based on your AGI.
- Other itemized expenses
- Other itemized deductions (see Schedule A 'Other Miscellaneous Deductions' for complete list and description). This includes gambling losses (only to the extent that they offset current year winnings) and casualty losses from income producing property.
- Itemized deduction
- Your total itemized deductions from Schedule A before applying the Pease limitation. The Pease limitation reduces your itemized deductions by $3 for every $100 that your AGI is over an income threshold. The limitation can reduce your allowable itemized deductions by no more than 80%.
Income Limitation for Itemized Deduction Filing Status Limitation begins at an AGI of: Married Filing Jointly $313,800 Qualified Widow(er) $313,800 Single $261,500 Heads of Household $287,650 Married Filing Separately $156,900
- Deduction for exemptions
- For each exemption you claim in 2017 you get a $4,050 reduction in taxable income. You can get an exemption for yourself and an exemption for your spouse (if you are married filing jointly) as long as you (or your spouse) can't be claimed as a dependent on someone else's taxes. You also get an exemption for each dependent you claim in 2017. For example, if you are married filing jointly with two dependent children, your total exemptions would be $4,050 X 4. However, the Personal Exemption Phase (PEP) out can reduce this amount for high earners. The PEP reduces your total exemption by 2% for every $2500 ($1250 if married filing separately) of additional Adjusted Gross Income (AGI).
Personal Exemption Phaseout for 2017 Filing Status PEP Phaseout Threshold PEP Phaseout Ends Married Filing Jointly $313,800 $436,300 Qualified Widow(er) $313,800 $436,300 Single $261,500 $384,000 Heads of Household $287,650 $410,150 Married Filing Separately $156,900 $218,150
- Standard or itemized deduction
- This is the higher of your Standard Deduction or your Itemized Deduction.