Erdman Financial Group · Free Tool
Your highest bracket taxes
one dollar. Not all of them.
The most common tax myth in America — visualized. See exactly which of your dollars are taxed at which rate, and why earning more never leaves you with less.
Enter your income above and click Visualize
Your personalized bracket breakdown will appear here
Gross Income
—
before deductions
Total Tax Owed
—
federal income tax
Effective Tax Rate
—
what you actually pay
Marginal Rate
—
top bracket only
Your Income, Sliced by Tax Bracket
Bracket-by-Bracket Breakdown
| Bracket |
Income Range |
Your Dollars in This Bracket |
Tax in This Bracket |
Marginal Rate
—
The rate on your last dollar
Your marginal rate is what you pay on the very last dollar you earn — and only that dollar. People often think this rate applies to all their income. It doesn't. Most of your income was taxed at lower rates long before reaching this bracket.
Effective Rate
—
What you actually pay overall
Your effective rate is total tax divided by total income — the real percentage of your income going to the IRS. This is almost always significantly lower than your marginal rate, and it's the number that actually matters for your financial plan.
Myth Buster
What actually happens if you get a raise?
Extra Tax Owed
on the additional income
You Take Home
—
after tax on the raise
Raise Tax Rate
—
blended on extra income
You always take home more money when you earn more. A raise never leaves you worse off. Only the additional dollars get taxed at higher rates — and even then, you keep more than you give.
Tax Clarity Is Just the Starting Point
Understanding your brackets is step one. Optimizing them is where the real work happens.
Roth conversions, tax-loss harvesting, account type strategy, IRMAA planning — there's more leverage inside your tax situation than most people realize. If any of this resonates, let's talk.
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