It’s likely that portions of your taxable income are taxed at different rates, in different tax brackets. Your marginal tax bracket represents the highest tax rate you’ll pay on your taxable income. Depending on your filing status and the income you received during the year, your marginal tax rate could be as high as 37%.
If you want to know your marginal tax bracket for the 2023 tax year, use our calculator. Simply enter your taxable income and filing status to find your top tax rate.
Calculator disclaimer: Calculations are estimates based on the tax laws as of November 2023. You may want to consult with a tax professional concerning your tax situation.
How Do Tax Brackets Work?
Your tax bracket is determined by the highest dollar you earned, based on your taxable income, which may be lower than what you actually made during the year.
For example, let’s say you earned $63,850 in 2023 and filed as a single taxpayer. After deductions and adjustments, $50,000 of that income may be taxable. The calculator will show that the marginal tax rate for a single person with $50,000 in taxable income is 22%.
Because the U.S. tax system is “progressive,” not all of your income will be taxed at that rate.
Your first $11,000 of earnings will be taxed in the lowest tax bracket, at 10%; the next tier of your income will be taxed at a rate of 12%. Once your income progresses to its highest tax bracket—22% in this example—you’ve hit your marginal tax rate.
What Are the 2023-2024 Tax Brackets?
Tax brackets are adjusted by the IRS each year to take inflation into account.
Here’s a sample of the 2023-2024 tax brackets.
What Is the Marginal Tax Rate?
Determining your marginal tax rate can be a simple process, but first you must do the real work: figuring out your taxable income.
You can determine your taxable income by adding up all of your reportable income and subtracting certain tax deductions and adjustments including:
- The standard deduction or itemized deductions
- Retirement savings contributions
- Student loan interest
- Penalties for early withdrawals from CDs (certificates of deposit)
After tallying up your taxable income, you can pinpoint your marginal tax rate. Just use the calculator above—or find the top tax bracket that corresponds to your filing status and taxable income.
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