Income Tax Bracket Calculator
Enter the allowance and bands, and see the tax worked out band by band.
- Calculated in your browser
- Formula and rounding
- Reviewed
Income taxExample
$6,000.00
effective 12.00% · marginal 20%
- Kept$44,000.0088%
- Income tax$6,000.0012%
- After tax
- $44,000.00
- Allowance used
- $10,000.00
| Band | Income in band | Rate | Tax |
|---|---|---|---|
| $10,000.00 – $30,000.00 | $20,000.00 | 10.00% | $2,000.00 |
| $30,000.00 – and above | $20,000.00 | 20.00% | $4,000.00 |
- You're entering the rules. We haven't checked them for your country.
Tax-free allowance
min(income, allowance)income = 50000allowance = 10000
= 10000
Band 1: 10% on 10000–30000
taxable_in_band × ratetaxable = 20000rate = 10
= 2000
Band 2: 20% on 30000–above
taxable_in_band × ratetaxable = 20000rate = 20
= 4000
Total income tax
Σ band tax= 6000
Effective tax rate
tax ÷ income × 100= 12
Marginal tax rate (on the next unit of income)
rate of the band containing income= 20
- Marginal rate
- Effective rate
With these bands, On $50,000.00 the tax is $6,000.00: effective rate 12.00%, marginal rate 20%.
Assumptions
- You're entering the rules. We haven't checked them for your country.
- Band limits are levels of total income; the allowance is taxed at 0%.
- No social contributions.
- Credits, deductions, surcharges and tapers are not modelled.
Your numbers stay in your browser. Nothing you type is sent to our servers. More on privacy
Estimates for general information only — not financial, tax or legal advice. Your actual figures depend on your employer’s payroll, your full tax situation, your lender’s or bank’s terms and rules we may not model. Check official sources and speak to a qualified adviser before making decisions. You entered the tax rules yourself; MoneyOtter hasn’t checked them for your country. Disclaimer · Report an error
How to calculate income tax with tax brackets
Most countries tax income in bands. Each slice of income is taxed at its own rate, and only the part inside a band pays that band’s rate. This calculator takes the allowance and bands you enter and shows the tax, slice by slice.
You’re entering the rules. We haven’t checked them for your country. Copy the allowance and bands from your tax authority’s site, and the calculator does the arithmetic and shows its working.
- 1
Enter your income and allowance
Type your yearly taxable income and the amount you can earn before tax starts. Leave the allowance at zero if your system has none.
- 2
Add the tax bands
For each band, enter where it ends and its rate. The last band runs to any income above it. You can add up to 12.
- 3
Read the tax and the working
You’ll see total tax, your effective and marginal rates, and a table of the tax in each band. Add a flat social contribution rate if your system charges one.
What this calculator does
- Enter a tax-free allowance and up to 12 tax bands
- Tax due, effective rate and marginal rate
- Band-by-band working showing the tax in each band
- Optional flat social contribution percentage
- Inline error naming any band that overlaps or runs backwards
- Works in any currency
Income of 50,000 with three bands
Allowance 10,000; 10% up to 30,000; 20% above
| Band | Income in band | Rate | Tax |
|---|---|---|---|
| 0 to 10,000 (allowance) | 10,000 | 0% | 0 |
| 10,000 to 30,000 | 20,000 | 10% | 2,000 |
| Above 30,000 | 20,000 | 20% | 4,000 |
| Total | 50,000 | 6,000 |
Tax is 2,000 + 4,000 = 6,000. The effective rate is 6,000 ÷ 50,000 = 12.00%. The marginal rate, the rate on the next unit you earn, is 20%. Only the top 20,000 is taxed at 20%, not the whole income.
How progressive tax brackets work
Picture your income filling a row of buckets. The first bucket is the allowance and is taxed at 0%. Once it’s full, income spills into the next bucket at its rate, and so on. tax = Σ (income inside band × band rate).
That’s why a raise never leaves you worse off through the brackets alone. Crossing into a higher band only changes the rate on the income above the line. The method is set out on the methodology page.
Effective rate vs marginal rate
The effective rate is total tax divided by total income: the share of your income that goes in tax. The marginal rate is the rate on your next unit of income. In the example they’re 12.00% and 20%. The marginal rate tells you what a raise or overtime keeps. The effective rate tells you the overall bite.
To check the percentages yourself, use the percentage calculator. To see the figures as hourly pay, try the salary to hourly calculator. If bands stay fixed while prices rise, the inflation calculator shows how much the thresholds lose in real terms.
What real tax systems add
Real systems are rarely just bands. Many add tax credits, deductions, allowances that taper away at higher incomes, social security or pension contributions, and state, provincial or local taxes. Filing status, family situation and the type of income can all change the result. In the UK, for example, the personal allowance shrinks by 1 for every 2 of income above 100,000.
This calculator handles bands, an allowance and one flat contribution rate. It won’t model anything else, so treat the result as a check on the band arithmetic.
Good to know
- You’re entering the rules. We haven’t checked them for your country.
- Real systems add credits, tapering allowances, social contributions, local taxes and deductions that this calculator doesn’t model.
- Enter taxable income for a full year. Monthly withholding on a payslip is worked out differently and can differ from the yearly figure.
- Bands must run in order without overlaps. If one doesn’t, the calculator names it so you can fix it.
What happens to the numbers you type
Your numbers stay in your browser. MoneyOtter works out your results on your device. We don’t send the amounts you type to our servers or store them. If you allow analytics, we record only broad ranges (for example “middle tax band”) to understand how the calculators are used. Like any website with ads, this page also loads advertising scripts; see our Privacy Policy.
The calculator is plain code running in this tab. It makes no network requests with your figures, and nothing is saved when you leave unless you choose to keep it. Read the privacy policy for how ads and analytics work on this site.
Related calculators and guides
Questions people ask
If I move into a higher tax bracket, is all my income taxed at the higher rate?
No. Only the income above the band threshold is taxed at the higher rate. Everything below keeps its lower rates.
What’s the difference between effective and marginal tax rates?
The effective rate is total tax ÷ total income. The marginal rate applies to your next unit of income. On 50,000 in the example, they’re 12.00% and 20%.
Where do I find the tax brackets for my country?
Your national tax authority publishes them, usually on a page about income tax rates. Check the tax year and whether the bands are for your region.
Can I include social security contributions?
Yes, as one flat percentage of income. Contributions with their own thresholds or caps aren’t modeled.
Why doesn’t my result match my payslip?
Payslips use withholding tables, pay-period rules and deductions such as pensions or credits. This calculator works out yearly tax from the bands you enter only.
What is a tax-free allowance?
An amount of income taxed at 0% before the first band starts. Entering an allowance of 10,000 works the same as a first band to 10,000 at 0%.
How many tax bands can I enter?
Up to 12, which covers the band structures most countries use. Each band needs an upper limit except the last.
Sources and review
Estimates for general information only — not financial, tax or legal advice. Your actual figures depend on your employer’s payroll, your full tax situation, your lender’s or bank’s terms and rules we may not model. Check official sources and speak to a qualified adviser before making decisions. You entered the tax rules yourself; MoneyOtter hasn’t checked them for your country.
Page reviewed by the MoneyOtter team · Methodology · Changelog · Report an error