Effective Tax Comparison
Compare two income scenarios side by side using effective tax rates. See the difference in take-home pay, both annually and per paycheck, and estimate the implied marginal rate between offers.
Scenario Inputs
Scenario A
Presets:
Scenario B
Presets:
Use this to translate annual income into a monthly, biweekly, or weekly paycheck so you can see the real-world impact on take-home pay.
Annual vs Per-Paycheck View
Scenario ACurrent
Annual gross$80,000
Annual tax$12,000
Annual take-home$68,000
Per-month gross$6,667
Per-month take-home$5,667
Effective tax rate15.0%
Scenario BOffer
Annual gross$120,000
Annual tax$21,600
Annual take-home$98,400
Per-month gross$10,000
Per-month take-home$8,200
Effective tax rate18.0%
Side-by-Side Comparison
Scenario labelsCurrent vs Offer
Gross income difference+$40,000
Tax difference+$9,600
Take-home difference+$30,400
Extra gross per month+$3,333
Extra take-home per month+$2,533
Implied Marginal Rate Between Offers
24.0%
This is 1 − (extra take-home ÷ extra gross). It reflects how much of the raise is lost to taxes and higher effective costs between Scenario A and B.
Quick Interpretation
- • Current has an effective rate of 15.0%, leaving 85.0% of income as take-home.
- • Offer has an effective rate of 18.0%, leaving 82.0% of income as take-home.
- • Moving from Current to Offer changes your annual take-home by $30,400 more per year.
- • Of each extra $1 in gross income between the scenarios, you keep about 76.0% and lose 24.0% to combined taxes.