Marginal Tax Rate (MTR) Calculator See how your next dollar is taxed — with 2025 federal brackets, FICA, and state tax mo...
Marginal Tax Rate (MTR) Calculator
See how your next dollar is taxed — with 2025 federal brackets, FICA, and state tax modeling.
The Marginal Tax Rate (MTR) is the rate at which your *next dollar* of income is taxed — not your entire income.
✅ Example: Single filer, $85,000 AGI (2025): • First $11,925 taxed at 10% • Next $36,550 taxed at 12% • Remaining $36,525 taxed at 22% → Marginal rate = 22% → Effective rate = 12.1% ($10,315 / $85,000)
⚠️ Myth: “I’m in the 22% bracket” does **not** mean 22% of all your income goes to taxes.
⚠️ Your *true* marginal rate can be **much higher** due to:
- FICA Phaseout (Medicare 0.9% over $200K) → +0.9%
- NIIT (Net Investment Income Tax) → +3.8%
- ACA Subsidy Cliff (losing premium tax credit) → +30–50% effective
- SS Taxation (up to 85% of benefits taxed) → +10–20%
Case Study: $190K AGI → $210K AGI (single, NY): • Federal MTR: 24% • +NY: 6.85% • +Medicare: 0.9% • +NIIT: 3.8% → **Total MTR = 35.55%**
| Bracket | Rate | AGI Range |
|---|---|---|
| 10% | 10% | $0 – $11,925 |
| 12% | 12% | $11,926 – $48,475 |
| 22% | 22% | $48,476 – $103,350 |
| 24% | 24% | $103,351 – $197,300 |
| 32% | 32% | $197,301 – $250,525 |
| 35% | 35% | $250,526 – $626,350 |
| 37% | 37% | Over $626,350 |
FICA: 7.65% (6.2% SS + 1.45% Medicare) on first $176,100; 1.45% above.
NIIT: 3.8% on investment income if AGI > $200,000 (single) or $250,000 (married).
➡️ Single Income
Enter current AGI and extra income (bonus, side gig). See marginal vs. effective rate.
➡️ Compare Scenarios
“What if I freelance vs. W-2?” or “Take this $10K raise or not?”
➡️ Withholding Estimator
See real take-home impact of a bonus or raise — not just gross.
Note: Uses 2025 IRS guidelines. State tax is estimated; actual rates vary by locality.