Frequently Asked Questions
Answers to common questions about tax brackets, taxable income, effective tax rates, and how to use the My Taxes federal and state income tax calculator.
What is my tax bracket?
Your tax bracket usually means the highest federal (or state) rate that applies to the last dollars of your taxable income. Media coverage often treats that top rate as if it applied to all of your income—it does not.
The U.S. federal income tax is progressive. Income is taxed in layers, or “buckets.” Lower portions of taxable income are taxed at lower rates; only the income that falls into higher brackets is taxed at those higher rates. For example, if you file as Single with $40,500 of taxable income in a year where the 22% bracket begins near that amount, only a small slice of income is taxed at 22%—not your entire $40,500.
Use the tax calculator and tax results pages to see how much income falls in each bracket for your filing status and year.
What is the difference between marginal and effective tax rate?
Your marginal tax rate is the rate that applies to your next dollar of taxable income—the top bracket you reach. Your effective tax rate is your total tax divided by your taxable income. Effective rate is almost always lower than your top bracket because earlier income was taxed at lower rates.
Example: if you owe about $4,700 on $40,500 of taxable income, your effective rate is roughly 11.6%, even if your top federal bracket is 22%.
What is taxable income?
Taxable income is not the same as the wages on your W-2. It is what remains after allowable adjustments, deductions (standard or itemized), and other rules that reduce the amount subject to income tax. On Form 1040, taxable income appears on a labeled line that can change by year.
My Taxes estimates tax from the taxable income you enter. It does not automatically apply credits, above-the-line deductions, or every state-specific subtraction. If you do not know your taxable income, start with last year’s return or a careful estimate.
How do I use the My Taxes calculator?
On the home page, choose your tax year, taxable income, state, and filing status, then click Next. The results page shows federal brackets and—when available—state income tax brackets for the same inputs. You can change year, income, filing status, or state without starting over.
From results, open Timeline View to chart estimated federal tax across multiple years for the same filing status and taxable income. That helps you see whether your federal tax would have gone up or down over time. More detail is on the About page.
Do you show state income tax as well as federal?
Yes. After you pick a state, the results view can show that state’s income tax brackets for supported years. Some states have no wage income tax (for example, Florida, Texas, and Washington). Others use a flat rate or graduated brackets. Local city or county income taxes are generally not included.
What filing statuses are supported?
My Taxes supports the common IRS filing statuses used in federal tax tables: Single, Married Filing Jointly, Married Filing Separately, and Head of Household. State tables are shown using the same status labels; some states treat Head of Household like Married Filing Jointly or Single depending on their statutes.
Did I really get a tax break?
Bracket widths and rates change over time, so the same taxable income can produce a different federal tax bill in different years. Enter your filing status and taxable income, then use Tax Results and the Timeline View to compare estimated federal tax across years. That gives a clear picture of whether the tables alone would have raised or lowered your tax—keeping in mind that real returns also depend on deductions and credits.
What is SALT?
SALT means State And Local Taxes. It often includes state income tax and property taxes you may be able to deduct on a federal return when you itemize. Rules for what qualifies are detailed; see the Tax Foundation overview of the SALT deduction.
The Tax Cuts and Jobs Act of 2017 capped the federal SALT deduction for many taxpayers, which especially affected high-tax, high-cost areas. Deduction limits and related rules can change with new legislation, so confirm the current limit for the tax year you are filing. SALT can reduce federal taxable income when you itemize, but My Taxes does not compute your SALT deduction for you.
Is this official tax advice?
No. My Taxes is an educational tool that applies published federal and state rate schedules to the taxable income you provide. It is not the IRS, a state revenue department, or a tax professional. For filing decisions, use IRS publications, your state tax agency, qualified software, or a licensed advisor.