Your effective tax rate is the average rate at which your income is taxed, calculated by dividing your total tax paid by your total income. Unlike the marginal rate (which applies only to your last dollar of income), the effective rate represents the actual percentage of your income that goes to taxes across all brackets combined.
The effective rate is always lower than your marginal rate in a progressive tax system because lower portions of your income are taxed at lower rates. It is the most meaningful measure of your true tax burden and the best number to use when comparing tax loads across states, filing statuses, or income levels.
Effective Tax Rate = Total Tax Paid ÷ Total Gross Income × 100
This calculation can include just federal income tax, or it can incorporate state tax, FICA, and other taxes for a comprehensive view. Our state calculators show your combined effective rate including federal, state, and FICA taxes.
Typical effective rates (federal only, single filer with standard deduction):
| Gross Income | Federal Effective Rate |
|---|---|
| $40,000 | ~5.5% |
| $75,000 | ~10.8% |
| $100,000 | ~13.6% |
| $150,000 | ~17.2% |
| $250,000 | ~21.5% |
Adding state tax and FICA increases the effective rate by 10 to 18 percentage points depending on the state. A Californian earning $100,000 has a combined effective rate around 31%, while a Texan at the same income pays approximately 22%.