How To Calculate Marginal Tax Rate

12jacob12 Oct, 2022Real Estate

In order to calculate your tax bill, you must know what your marginal tax rate is. The marginal tax rate is the highest tax rate applicable to your income. You can find your marginal rate by looking at IRS tax brackets. Your taxable income is the amount you earn after all deductions. For example, if you earn $175,000 a year, your marginal tax rate would be 24%. However, most of your income would fall into the 22% tax bracket and some would fall into the 12% or 10% tax brackets.