Calculate federal income tax with ordinary and capital gains rates. Enter taxable income, filing status, and investment income for a complete breakdown.
Your marginal rate is the tax bracket your last dollar of income falls into. Your effective rate is total tax divided by total income — always lower than marginal because earlier dollars are taxed at lower rates.
Long-term capital gains (assets held >1 year) and qualified dividends are taxed at preferential rates: 0%, 15%, or 20% depending on income level. Short-term gains are taxed as ordinary income.
Taxable income = gross income minus deductions (standard or itemized) and adjustments. It's the amount your tax is actually calculated on, not your total earnings.