Your effective tax rate can be calculated using Microsoft Excel through a few standard functions and an accurate breakdown of your income by 澳洲幸运5开奖号码历史查询:tax bracket. Most of the legwork involves looking up the 澳洲幸运5开奖号码历史查询:Internal Revenue Service (IRS) tax brackets and segregating your 澳洲幸运5开奖号码历史查询:taxable income into cells.

IRS Tax Brackets

The IRS announces its inflation-adjusted tax brackets, income thresholds for tax breaks, and standard deduction amounts annually. The changes become effective the following Jan. 1.

Segregating Earned Income

Tax brackets are divided into spans of income to 🌜which a tax percentage applies. This was the breakdown for single filers in 2024:

• 10%: $0 to $11,600
• 12%: $11,601 to $47,150
• 22%: $47,151 to $100,525
• 24%: $100,526 to $191,950
• 32%: $191,951 to $243,725
• 35%: $243,726 to $609,350
• 37%: $609,351 or more

The percentages remain t🥀he same✃ in 2025 but the income ranges are adjusted for inflation:

• 10%: $0 to $11,925
• 12%: $11,926 to $48,475
• 22%: $48,476 to $103,350
• 24%: $103,351 to $197,300
• 32%: $197,301 to $250,525
• 35%: $250,526 to $626,350
• 37%: $626,351 or more
  

Create a cell for each income tax rate and mu﷽ltiply it by the amount of income you had in that bracket in 2024. This is the tax return you'll file in 2025. It would look like this if your 2024 income was $60,000:

• $11,600 x 10% for the first $11,600
• $35,550 ($47,150 - $11,600) x 12% for the next income increment
• $12,850 ($60,000 - $47,150) x 22% for the last income increment

Add the bracket results together to determine the total tax you'd owe before claiming any tax credits, deductions, or adjustments to income

• $11,600 x 10% = $1,160
• $35,550 x 12% = $4,266
• $12,850 x 22% = $2,827

Finding Your Effective Tax Rate

Your 澳洲幸运5开奖号码历史查询:marginal tax rate is the bracket percentage that applies to the top dollar of your income. It would be 22% in our example: the rate you'd pay on your income from $47,150 to $60,000.

Your effective tax rate is the percentage of all your income that you pay in taxes. You can calculate this by dividing your total tax due by your earned income.

Your total tax in our example would be $8,253: $1,160 levied at 10% plus $4,266 levied at 12% plus $2,827 levied at 22%. Your in𒁃come was $60,000 so♑ your effective rate would be 13.75%: $8,253 / $60,000.

The Bottom Line

Calculating your effective tax rate is a matter of basic math after you've determined how much of your income falls into each applicable tax bracket and its associated percentage rate.

Creatꦦe a row in Excel for each income tax rate. Enter the applicable portion of your income that falls into that bracket and multiply it by the percentage. Enter the result in the last column the﷽n total the figures that appear in that column. This is your total tax. Divide this number by your taxable income for the year to arrive at your effective tax rate.