Taxes

Tax Bracket Calculator: Why Your Marginal Rate Is Not Your Effective Rate

By David Brown · April 2026 · 3 min read

'I don't want a raise — it'll push me into a higher bracket.'

This is wrong. Understanding why requires understanding how marginal tax rates actually work.

How Marginal Tax Rates Work

The US has a progressive tax system. Higher rates apply only to income above each bracket threshold — not to all your income.

2024 single filer example:

First $11,600 taxed at 10%
$11,601 to $47,150 taxed at 12%
$47,151 to $100,525 taxed at 22%
$100,526 to $191,950 taxed at 24%

If you earn $55,000, you pay:

10% on the first $11,600 = $1,160
12% on the next $35,550 = $4,266
22% on the remaining $7,850 = $1,727
Total tax: $7,153

Your marginal rate is 22% (the rate on your last dollar of income).

Your effective rate is 13% ($7,153 ÷ $55,000).

A $5,000 raise at $55,000 costs you $1,100 in additional federal tax (22% of $5,000). You keep $3,900. There is no scenario where a raise makes you net poorer.

Standard Deduction First

Before brackets even apply, the standard deduction ($14,600 for single filers in 2024) comes off the top. Your taxable income is your gross income minus deductions and adjustments.

State income taxes, FICA, Medicare — each adds to your total tax burden beyond federal income tax, making effective rates more complex. Our calculator handles all of it.

[Calculate your tax bracket →](https://doesitaddup.com)

Try it yourself: All free calculators at doesitaddup.com →

This article is for informational purposes only. See our disclaimer.