Tax Calculator

Estimate taxes using either a progressive bracket model or a flat-rate model, then compare outcomes after deductions, adjustments, and credits. This is designed for broad scenario planning, so you can edit brackets to match your region’s published tables.

Need more tax tools? Explore the Tax Calculators hub, or browse Finance Calculators for budgeting and loan planning alongside tax estimates.

Accuracy & Method: Estimates run locally in your browser using your inputs (including editable brackets). No data is sent anywhere.

Last Updated: January 20, 2026

Calculator

Choose monthly or annual income, enter deductions/credits, and model either progressive brackets or a flat rate. For full browsing, see All Calculators.

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Enter your gross income before taxes. You can type commas (e.g., 80,000) and the calculator will handle it.
If you select monthly, the calculator annualizes income for the tax computation and then shows both monthly and annual results.
Filing status is shown in your summary to help compare scenarios. This page does not hardcode region-specific rules—edit brackets for your jurisdiction.
Use for contributions or adjustments that reduce taxable income (before deductions). Example: eligible retirement contributions in some systems.
Deductions reduce taxable income (unlike credits). Enter 0 if none.
Credits reduce tax after it’s calculated. Final tax is floored at 0 if credits exceed computed tax.
Progressive mode applies each bracket rate only to income inside that band (marginal brackets). Flat mode applies one rate to all taxable income.
Example brackets (edit to match your region)
Thresholds should be ascending starting points for each bracket (e.g., 0, 10,000, 40,000). Rates are percentages. Brackets are automatically sorted before calculation.
Guardrails: minimum 3 brackets, maximum 7 brackets. Duplicate thresholds are not allowed.
Display rounding affects how values are shown (not the internal bracket math). Currency is rounded consistently across results and breakdowns.
Calculating your estimate…
Final Tax Mode: Progressive
$0.00
After credits; floored at $0.00.
Net Income Annual view
$0.00
Gross − Final Tax
Effective Tax Rate (Final Tax ÷ Gross)
0.00%
Useful for comparing scenarios across modes and deductions.
Tax share Net share (1 − tax share)

Step-by-step breakdown

This breakdown shows normalization (monthly vs annual), taxable income, tax computation (flat or bracket-by-bracket), then credits. Values are displayed using your selected rounding policy.

How it works

This calculator estimates taxes using a generalized model. First, it computes taxable income by subtracting adjustments and deductions from gross income:
Taxable Income = max(0, Gross Income − Adjustments − Deductions)

In progressive (bracket) mode, tax is calculated band-by-band. Each rate applies only to the income that falls within that bracket. This is why marginal rate (the rate on the next dollar) can be higher than your effective rate (your overall tax burden).

In flat rate mode, one percentage applies to all taxable income:
Tax = Taxable Income × (FlatRate ÷ 100) Then credits are applied after tax is computed:
Final Tax = max(0, Tax − Credits)

Effective tax rate is shown as (Final Tax ÷ Gross Income) × 100 (or 0% if gross income is 0). For planning, combine this with other finance tools from the Business Calculators hub if you’re comparing self-employed vs payroll scenarios.

Use cases

  • Compare progressive vs flat policy: Model the same taxable income under brackets and a flat rate to see how marginal bands change the outcome and whether a flat scenario would increase or reduce your total.
  • Plan deductions strategy: Enter potential deductions (or standard vs itemized equivalents) to see how lowering taxable income changes the bracket portions that get taxed at higher rates.
  • Estimate the value of credits: Add credits to see how they reduce tax after calculation, and confirm the final tax floors at zero so you don’t accidentally assume negative tax.
  • Monthly vs annual cash-flow planning: Switch to monthly income input to annualize for tax math, then read both monthly and annual outputs to align with budgeting.
  • Scenario testing for raises or side income: Increase gross income and watch how the additional amount may spill into a higher bracket—helpful for understanding marginal impact even when effective rate stays lower.

Explore more in Tax Calculators.

Examples

The examples below use the default example brackets shown in the editor (you can change them). These are worked using the same logic as the calculator: taxable income first, then tax, then credits.

Example 1: Progressive brackets (no credits)

Gross Income = 80,000 (annual), Adjustments = 2,000, Deductions = 10,000, Credits = 0.
Taxable Income = max(0, 80,000 − 2,000 − 10,000) = 68,000 The calculator then applies each bracket rate only to the portion of income inside that bracket (sorted by threshold). You’ll see a bracket-by-bracket breakdown inside the results.

Example 2: Flat rate scenario

Gross Income = 60,000 (annual), Adjustments = 0, Deductions = 5,000, Flat Rate = 15%, Credits = 0.
Taxable Income = max(0, 60,000 − 0 − 5,000) = 55,000
Tax = 55,000 × 0.15 = 8,250
Final Tax = max(0, 8,250 − 0) = 8,250 Net Income becomes 60,000 − 8,250 = 51,750 (before other non-tax deductions you may have outside this model).

Example 3: Deductions + credits combined

Gross Income = 45,000 (annual), Adjustments = 1,500, Deductions = 8,000, Credits = 1,200 (progressive mode).
Taxable Income = max(0, 45,000 − 1,500 − 8,000) = 35,500 The calculator computes bracket tax on 35,500, then applies credits afterward:
Final Tax = max(0, Tax − 1,200) If credits exceed computed tax, final tax floors at 0 and the results panel will note it.

Common Mistakes

  • Confusing marginal vs effective rate: A higher top bracket rate doesn’t mean all your income is taxed at that rate—only the portion in that bracket.
  • Entering credits as deductions: Deductions reduce taxable income; credits reduce tax after it’s calculated. Mixing them changes results.
  • Unsorted or duplicate bracket thresholds: If thresholds repeat or rates are out of range, the calculator blocks estimation until fixed.
  • Forgetting annualization: Monthly input is annualized for calculation. Always read both monthly and annual outputs to avoid double-dividing.
  • Assuming jurisdiction accuracy: The default brackets are examples. Replace with official tables for your region before relying on results.

Quick Tips

  • Start with official bracket tables: Copy your region’s bracket thresholds and rates into the editor to make estimates more relevant.
  • Use adjustments for pre-tax contributions: Model contributions that reduce taxable income (where applicable) separately from deductions for clarity.
  • Compare two scenarios quickly: Run with and without a deduction or credit and use “Copy Full Summary” to paste results into notes.
  • Sanity-check extremes: If deductions and adjustments exceed gross, taxable income will floor at 0 and the calculator will explain why.
  • Choose rounding intentionally: Use cents for precision or whole numbers for planning. Keep the same policy when comparing scenarios.

FAQ

What’s the difference between marginal and effective tax rate?
Marginal rate is the rate applied to the next portion of taxable income—typically the highest bracket you reach in progressive systems. Effective rate is your overall tax burden as a percentage of gross income, calculated here as (Final Tax ÷ Gross Income) × 100. Because progressive brackets tax income in layers, your effective rate usually remains below your top marginal rate. This calculator shows both concepts: bracket-by-bracket tax explains marginal impact, while the effective rate helps compare scenarios like deductions, credits, or switching to a flat rate model.
How do deductions and credits affect the estimate?
Deductions reduce taxable income before tax is calculated, which can lower the amount taxed in higher brackets. Adjustments (pre-tax contributions) also reduce taxable income and are subtracted before deductions in the formula. Credits work differently: they reduce tax after it’s computed, so they directly lower the final bill dollar-for-dollar in this model. If credits exceed the computed tax, the final tax is floored at zero to avoid negative tax. The breakdown panel shows each step so you can see whether savings come from a smaller taxable base or from credits applied at the end.
How do I edit brackets, and what do the thresholds mean?
In progressive mode, each bracket row has a threshold and a rate. The threshold is the starting taxable income for that bracket (for example, a threshold of 40,000 means that bracket applies to income above 40,000, up to the next bracket’s threshold). Rates are percentages from 0 to 100. You can add brackets (up to seven) or remove brackets (down to three). Before calculation, the tool sorts brackets by threshold so it stays stable even if you enter rows out of order. Duplicate thresholds are blocked because they create ambiguous band ranges.
Why might these results differ from my real tax return?
This calculator is a generalized estimator. Real tax systems often include additional layers such as multiple tax schedules, special income categories, phase-outs, caps, surcharges, payroll taxes, alternative minimum rules, local taxes, or withholding adjustments. Credits can also be refundable or nonrefundable in ways that change outcomes. The purpose here is planning: you can model a broad scenario and edit the bracket table to match official published rates for your region. For decisions that need exact accuracy, use your local tax authority guidance or a qualified professional with current-year rules.
What happens if I choose monthly income instead of annual?
If you select monthly input, the calculator annualizes gross income by multiplying by 12 for the tax computation, then shows both annual and monthly outputs so you can align the estimate with cash-flow planning. For example, a monthly gross of 5,000 becomes an annualized gross of 60,000 for bracket or flat calculations. Deductions, adjustments, and credits are also treated as annualized in that mode for consistency. If your deductions or credits are truly monthly amounts, you can manually convert them to annual figures before entering them for a more apples-to-apples estimate.
How does rounding work in the results?
You can choose to display currency values rounded to the nearest cent or to the nearest whole number. The calculator keeps internal computations stable (including bracket math) and then formats displayed values consistently according to your selection. This helps you compare scenarios without confusing small formatting changes for meaningful differences. Effective rate is displayed to two decimals. If you are building a budget, whole-number rounding can be easier to read; if you are comparing two close scenarios, cent rounding provides more precision.
What if taxable income becomes zero or negative?
Taxable income is floored at zero using the formula max(0, Gross − Adjustments − Deductions). If your adjustments and deductions exceed your gross income, the calculator sets taxable income to 0 and shows a note explaining the floor. In that case, bracket or flat tax on taxable income becomes 0, and credits can’t push tax below zero because final tax is also floored at 0. This behavior is useful for planning scenarios where income drops or deductions rise, but it’s still an estimate—some real systems treat losses, carryforwards, or refundable credits differently.
Is this private, and does it send my data anywhere?
This page runs locally in your browser using plain JavaScript. The calculator does not transmit your income, deductions, credits, or bracket edits to any server. When you use the copy buttons, the text is placed onto your device clipboard so you can paste it into notes or messages. If you refresh or reset the page, values return to defaults. For extra confidence, you can use the tool offline after it loads once, since it does not rely on external libraries or network calls for calculations.

Sources & References

  • Your local tax authority guidance: Official current-year tax rules, deductions, and credits.
  • Official bracket tables: Published threshold and rate tables for your filing status and income type.
  • Payroll/withholding documentation: If you’re comparing paychecks vs annual totals, withholding rules may differ from final tax liability.
  • Tax preparation summaries: Region-specific definitions of taxable income, adjustments, and credit eligibility.

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