📌 Overview

Estimate income tax using progressive brackets, showing the tax due in each band, total tax, effective rate and take-home pay.

🧾 Income Tax Calculator

Estimate income tax using progressive brackets, showing the tax due in each band, total tax, effective rate and take-home pay.

Annual income

Standard deduction / allowance

Tax brackets (one per line: upper_limit,rate% — use blank upper limit for the top band)

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📋 How to Use

Enter your annual taxable income.
Adjust the deduction if applicable.
Choose or edit the bracket preset.
Click Calculate to see the band-by-band breakdown.

❓ FAQ

Does moving into a higher bracket tax all my income?

No — this is the most common misunderstanding. Only the portion above each threshold is taxed at the higher rate. Earning one unit more never reduces your take-home pay.

What is the effective tax rate?

Total tax divided by total income. It is always lower than your top marginal bracket, because the lower bands are taxed at lower rates.

❓ More Questions

If I jump to a higher bracket, is all my income taxed at the higher rate?

No - that is the most common misunderstanding. Only the part above the threshold is taxed at the higher rate; earning one more unit can never reduce your take-home pay.

What is the effective tax rate?

Effective tax rate = total tax divided by total income. It is always below your top marginal rate because the lower brackets are taxed at lower rates.

💡 Use Cases

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Job Offer

Compare take-home across salaries.

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Tax Planning

See the marginal cost of extra income.

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Learning

Understand how brackets actually work.

🔗 Related Tools

📖 Deep Dive: Income Tax Calculator

How progressive tax works

A progressive tax slices income into brackets, each with its own rate; only the portion falling in a bracket is taxed at that bracket's rate. That is why earning one more unit can never leave you with less under a progressive system.

A concrete example

Assume rates: 0-36000 at 3%, 36000-144000 at 10%, 144000-300000 at 20%. With annual taxable income of 200000:

first 36000 times 3% = 1080

middle 108000 times 10% = 10800

remaining 56000 times 20% = 11200

total 23080, effective rate 11.5%, not the top bracket's 20%.

Marginal vs effective rate

The marginal rate is the rate on your last unit of income (20% above); the effective rate is total tax divided by total income (11.5% above). Use marginal rate for raise or side-income decisions, effective rate to assess overall tax burden.

Usage note

This tool's default brackets are a generic example; you can edit them to match your region's actual table. The result is an estimate and excludes special deductions, social security, housing fund, and tax credits; it is not tax advice. Formal filing should follow tax authority rules or a professional.