This is a very simple Tax Estimator calculator allowing you to calculate how much you would owe in taxes for the tax year you are interested in. We break your taxable income into long term capital gains/losses (taxes for sales of investments) and ordinary income.
A fair warning, this is NOT meant to replace your normal tax advisors but rather to give you a rough estimate of taxes owed. This will allow you to make additional tax payments (and avoid those nasty late fees or interest). Our calculator is sufficient for those with relatively simple tax profile who want to get rough estimate of what they owe. It is particularly useful for freelancers and the self employed who don’t have taxes withheld and therefore risk large penalties if they don’t make quarterly estimates.
Our output shows your total taxes owed as well as the marginal (the highest tax rate you fall under) and average tax rates (simply total taxes divided by your income). Since the US has a progressive tax system (ie the US taxes higher income at a higher percentage) the marginal rate will always be higher than the average.
Our calculator takes into consideration your standard deduction (which is largely based on your marital status).
The Tax Estimator gives a rough estimate of the taxes you'd owe for a given tax year, splitting your taxable income into long-term capital gains/losses and ordinary income. It also factors in your standard deduction, which is largely based on your marital status.
The marginal rate is the highest tax bracket your income falls into, while the average rate is your total taxes owed divided by your income. Because the U.S. uses a progressive tax system, your marginal rate will always be higher than your average rate.
It's particularly useful for freelancers and the self-employed, who don't have taxes withheld from a paycheck and risk penalties if they don't make quarterly estimated payments. It's built for people with a relatively simple tax profile who want a rough number, not a full return.
No — this is explicitly not meant to replace a tax advisor. It's designed to give you a rough estimate so you can make additional estimated payments and avoid late fees or interest, not to be a substitute for professional advice or an actual filing.
The Budget Calculator and Budget Analysis tool can help you plan around what you'll owe, and the Compound Interest Calculator can help you see the long-term effect of what you save versus what goes to taxes.
