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Tax simulator
True marginal rate visualizer
Your tax bracket is rarely the rate you actually pay on your next dollar. This stacks every layer that lands on a high earner's next dollar, including the federal bracket, the investment-income and Medicare surtaxes, state tax, the AMT interaction, and phaseout cliffs, and plots the real marginal rate across a range of income so the hidden spikes show up. You see what an extra dollar of income or a bonus really keeps.
Background reading: Your real tax picture
True marginal rate on your next dollar of ordinary income
49.2%
What stacks into that rate
Federal bracket35.0%
Additional Medicare (0.9%)0.9%
Net investment income tax (3.8%)0.0%
State (estimated)13.3%
Where this goes next
This explains the rate and where it spikes; it does not tell you what to do. Decisions like timing income, exercising options, or relocating are where a CFP comes in.
Assumptions and simplifications
- AMTI is approximated as total income plus the ISO bargain element (AMT disallows the standard deduction); other AMT preference items are not modeled.
- AMT is considered only when an ISO bargain element is supplied; ordinary wage earners without ISO exercises are treated as outside AMT.
- The state layer is the state top marginal rate (or a coarse bucket), added on top: exact at the top bracket, an approximation below it.
- The next long-term-gain dollar is placed at total taxable income plus investment income to select its rate.
- Phaseout-cliff add-ons are included only when a clawback rate is supplied; specific bands are not yet parameterized.
- This is an estimate; the AMT interaction and multi-state sourcing are flagged for licensed calculation logic and pre-launch review.