💸 Tax Calculator

Calculate income tax using 2024 brackets for the US, UK, Canada, Australia & India — or use Sales/VAT mode for purchase tax, or build your own with Custom Brackets.

Free 2024 Rates Multi-Country

Additional Taxes (optional)

Include FICA (Social Security + Medicare)

6.2% SS + 1.45% Medicare on wage income

Include National Insurance

Class 1: 8% (£12,570–£50,270), 2% above

Include Medicare Levy

2% of taxable income

Include Health & Education Cess

4% on income tax amount

💡 Calculate sales tax, VAT, or GST on a purchase amount.
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Tax calculated on top of the entered price: Total = Price + Tax.
Tax is already inside the price. Pre-tax = Price ÷ (1 + rate).
💡 Define your own progressive tax brackets. Enter the minimum income and rate for each bracket.
Rate (%)FromTo (blank = top)

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Income Tax

US, UK, Canada, Australia, India — 2024 brackets

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Sales / VAT

Calculate tax on a purchase, include or exclude mode

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Custom Brackets

Define your own progressive tax brackets

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Bracket Table

See exactly how much tax falls in each bracket

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What-If

Compare tax at different income levels

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Monthly View

Annual tax broken down to monthly amounts

📐 Income Tax Formulas

Taxable Income = Gross Income − Deductions

Tax = Σ (rate × amount in each bracket)

Effective Rate = Total Tax ÷ Gross Income × 100

Take-Home = Gross Income − Total Tax

How progressive brackets and VAT extraction are calculated

Income tax here is calculated in two steps. First, taxable income = gross income - deductions, where the deduction is either the standard amount for your country and filing status or an itemised figure you enter. Second, that taxable income is sliced across the brackets, and each slice is taxed at its own rate rather than the whole amount being taxed at the top rate reached. The slices are added together to give the income tax figure.

Any additional contributions you switch on are computed separately on their own thresholds. UK National Insurance Class 1, for example, applies 8 per cent between 12,570 and 50,270 and 2 per cent above that. Total tax is income tax plus those additions, and take-home pay = gross income - total tax.

Two rates are then reported. The effective rate is total tax / gross income x 100. The marginal rate is the rate applied to your last unit of income.

For VAT and sales tax: adding tax gives total = net x (1 + r), while extracting tax from an inclusive price gives net = gross / (1 + r), with the tax being the difference.

Worked example using custom brackets and a VAT price

Take the custom bracket mode with three bands: 0 per cent up to 10,000, 20 per cent from 10,000 to 40,000, and 40 per cent above 40,000. Enter a gross income of 60,000 and a deduction of 5,000.

Taxable income is 60,000 - 5,000 = 55,000. The first 10,000 is taxed at 0 per cent, giving nothing. The next 30,000, covering the band from 10,000 to 40,000, is taxed at 20 per cent, giving 6,000. The remaining 15,000 above 40,000 is taxed at 40 per cent, giving another 6,000. Total income tax is 12,000.

The effective rate is 12,000 / 60,000 x 100 = 20 per cent, even though the marginal rate is 40 per cent. Take-home pay is 48,000, which is 4,000 a month against a monthly gross of 5,000.

Now switch to the sales tax mode. A price of 250 that already includes 20 per cent VAT breaks down as 250 / 1.20 = 208.33 net, with 41.67 of VAT. Entering 208.33 as a pre-tax price and adding 20 per cent returns the same 250 total, confirming the two directions agree.

Reading the estimate and knowing its limits

The single most useful output is the gap between the effective and marginal rates. In the example above they are 20 and 40 per cent, which explains why the widespread fear of a pay rise pushing you into a higher bracket is misplaced. Only the income above the threshold is taxed at the higher rate; everything below keeps its original treatment, so a raise always leaves you with more after tax.

Treat the figure as an estimate. Bracket thresholds, standard deductions and contribution rates change every tax year, and the calculator cannot know your full circumstances. It does not model state or provincial income tax, local taxes, tax credits, pension relief, student loan repayments, salary sacrifice arrangements, dividend or capital gains rates, or the many allowances that taper at higher incomes. In the United States in particular, state income tax can add several percentage points that are absent here.

Use it to sanity-check a payslip, compare two job offers, or see the effect of a salary change. For filing, a refund claim or any decision with money at stake, confirm the numbers against your tax authority or an accountant. Nothing here is tax advice.

Frequently Asked Questions

Progressively. Each portion of your income is taxed at the rate for the band it falls in, not the whole amount at the top rate you reach. If the band above 40,000 is taxed at 40 per cent, only the income above 40,000 pays 40 per cent. This is why earning more never leaves you worse off after tax.
The marginal rate is the rate charged on your next unit of income, meaning the top bracket you have reached. The effective rate is total tax divided by gross income, which is the share you actually pay overall. The effective rate is always lower in a progressive system: 20 per cent effective against a 40 per cent marginal rate is typical.
Divide the gross price by 1 plus the rate as a decimal, then subtract the result from the gross to get the tax. At 20 per cent VAT, a price of 250 divides by 1.20 to give a net of 208.33 and VAT of 41.67. Dividing by 0.20 or taking 20 per cent of the gross price is the common mistake.
No. The preset systems cover national income tax and the contribution options you enable, such as FICA, National Insurance, the Medicare Levy or the Health and Education Cess. US state tax, Canadian provincial tax and local taxes are not modelled, so a US estimate can understate the total by several percentage points depending on where you live.
Treat every figure as an estimate. Bracket thresholds, standard deductions and contribution rates are revised each tax year, and the calculator does not account for credits, reliefs, pension contributions, student loan repayments or allowances that taper at higher incomes. Check anything that affects a filing or a financial decision against your tax authority or an accountant.