Tax Bracket Definition
Has your tax circumstance changed drastically in the past year? Are you worried that this new change could cause you to owe more money to the Internal Revenue Service in income taxes? If you want to be prepared for changes in your tax situation, you should use an online tax bracket calculator.
To use the calculator, you will need the following information:
Your tax filing status
Your annual income
Once you have this information, you simply plug the numbers into the system and your tax bracket will be revealed. If you are unsure of your actual income, you can estimate what you think your income will be at the end of the year.
Knowing your tax bracket can help you plan for the future by:
Helping you determine how much you will need to pay in taxes.
Telling you the amount you should withhold from your income.
Determining how much can be saved for retirement and other financial planning.
Don’t get caught paying taxes you did not plan to pay. Know your tax bracket and be financially prepared.
How to Calculate Tax Bracket
Let's be honest - sometimes the best tax bracket calculator is the one that is easy to use and doesn't require us to even know what the tax bracket formula is in the first place! But if you want to know the exact formula for calculating tax bracket then please check out the "Formula" box above.