Effective Income Tax Rate Estimate Calculator

Estimate what overall percentage of your income will go to income taxes. The calculator uses 2014 US tax policy and rates to estimate Federal income and payroll taxes for you.

Important: Estimate for planning purposes only.

What are your total wages and earnings (Note: For best results, reduce this by the total amount per year you plan to contribute to Tax Deferred Investments such as 401K plans)?
What is your taxable income from other sources excluding realized capital gains (e.g. interest, passive income)?
Are you filing single, single head of household, or married filing jointly?
How many dependent children can you claim (exclude self and wife)?
What would your itemized deduction be? (Exclude deductions for dependents. We will use this if bigger than standard deduction)
State income tax you expect to pay (if any)?
Are you self employed or an employee?

Please enter assumptions and click the Calculate button to see your results here.

The Effective State and Federal Income Tax Rate you should use, based on these assumptions is: %

Approximate Federal Income Taxes owed would be $. The Alternative Minimum Tax would be $ which you would have to pay if higher. You paying the Alternative Minimum Tax.

Additionally your Social Security Payroll Tax comes to $ and your Medicare Payroll tax comes to $.

The effective tax rate above reflects total amount of income taxes paid of $, including the taxes above and the amount you entered for state income taxes comes, divided by your total income from all sources (excluding capital gains) of $.

How is This Calculated?

The calculator took the income you provided, then reduced it by amounts equal to your allowable deduction for dependents and the greater of your standard deduction or the itemized deduction you provided. Federal income taxes were then calculated using the 2014 tax schedule. The alternative minimum tax was also calculated and the greater of these two was used to estimate your federal income taxes owed.

After this payroll taxes, specifically social security and medicaid were estimated. Social Security was based only on wages and earnings (not investment income) and up to the current income limit of $117,000. It is 6.4% of wages and earnings if an employee, 12.2% if self employed on wages and earnings up to this amount. Medicare is 1.45% of wages and earnings for employees and 2.9% of wages and earnings if you are self employed with no limit and a surtax for incomes over $250,000 for married couples, $200,000 for everyone else.

Not included in estimation:

  • Net Investment Income Tax of 3.8% for individuals with incomes over $200,000 or families with incomes over $250,000.
  • Personal exemption phase outs effecting individuals with incomes over $254,200 or families with incomes over $305,050.
  • Payroll taxes added at the state or local level.
  • Income taxes added at the local level.
  • Taxes from realizing Capital Gains.

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