Tax rules differ from place to place and change from time to time, so this calculator lets you enter the brackets yourself. The boxes already hold sample brackets, and you can replace them with the figures from your own tax authority. That way the result matches your situation and not someone else’s.
Start with your yearly income before tax. If you put money into a pre-tax retirement account, enter it in the pre-tax contributions box. Add your deduction and any tax credits. If your area also charges a flat tax on income, enter that rate too.
After you press Calculate, you will see your total tax, your taxable income, your effective tax rate and your marginal tax rate. The effective rate is the share of your income that goes to tax overall. The marginal rate is the rate on your last dollar of income. You will also see your take-home pay per year, per month and every two weeks, plus a table showing how much tax each income band produced.
Taxable income = income – pre-tax contributions – deduction. The income is split into bands using your bracket limits. Each band is multiplied by its own rate, and the results are added together. Only the part of your income inside a band is taxed at that band’s rate.
Credits are taken off the bracket tax afterwards. The flat tax, if any, is applied to income after pre-tax contributions. The effective rate is total tax divided by income. Take-home pay is income – pre-tax contributions – total tax.