What is the US federal income tax rate?

The US uses 7 progressive federal tax brackets: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Your effective rate is always lower than your marginal rate because each bracket only applies to income in that range. With a $14,600 standard deduction (2024, single filer), taxable income on a $60,000 salary is $45,400, resulting in an effective federal rate of about 13.8%.

How is UK income tax calculated?

UK income tax: 0% on the first £12,570 (personal allowance), 20% basic rate on £12,571-£50,270, 40% higher rate on £50,271-£125,140, 45% additional rate above £125,140. National Insurance is separate: 8% on earnings between £12,570 and £50,270, then 2% above that. The combined effective rate on a £50,000 salary is approximately 21%.

What is the difference between marginal and effective tax rate?

Marginal rate is the tax rate on your last dollar of income — for example, 22% if your income is in the 22% bracket. Effective rate is your total tax divided by your total gross income. On $60,000 in the US, marginal rate is 22% but effective federal rate is around 13-14% because most of your income falls in the lower 10% and 12% brackets.

How much income tax do you pay in Canada?

Canada federal income tax rates: 15% on the first CA$55,867, 20.5% on CA$55,867-CA$111,733, 26% on CA$111,733-CA$154,906, 29% on CA$154,906-CA$220,000, 33% above CA$220,000 (2024 rates). The basic personal amount of CA$15,705 is non-taxable. Provincial tax adds another 5-26% depending on your province.

How does income tax work in Germany?

Germany uses a progressive income tax with rates from 14% to 45%. The first 11,604 EUR is tax-free (Grundfreibetrag 2024). The top rate of 45% applies above 277,826 EUR. A solidarity surcharge (Solidaritaetszuschlag) of 5.5% on income tax applies above a threshold. Church tax (Kirchensteuer) of 8-9% is paid by registered church members. Combined with social contributions (pension, health, unemployment, care insurance), German workers pay roughly 40-45% of gross income in total.

What is the income tax rate in Australia?

Australia federal income tax rates (2024-25): 0% on first AUD 18,200, 19% on AUD 18,201-45,000, 32.5% on AUD 45,001-120,000, 37% on AUD 120,001-180,000, 45% above AUD 180,000. The Low Income Tax Offset (LITO) reduces tax for those earning under AUD 66,667. The 2% Medicare Levy applies to most taxpayers. Australians file taxes after July 1 each year.

Income Tax Calculator — US, UK, Canada Compared

Income Tax Calculator

Estimate your income tax in the US, UK, or Canada. See the difference between your marginal rate (what you pay on the last dollar) and your effective rate (what you actually pay overall).

Quick Answer

Your effective tax rate is always lower than your marginal rate because only income in each bracket is taxed at that rate. US top federal rate: 37%. UK: 45% income tax + 2% NI above £125,140. Canada: 33% federal + up to 25.75% provincial (Quebec).

Annual Gross Income ($)

How Income Tax Works Differently by Country

All three countries use progressive tax systems — higher income is taxed at higher rates — but the structure differs significantly.

🇺🇸 United States — Federal Income Tax

The US federal tax applies to income above standard deductions ($14,600 for single filers in 2024). States add their own income tax on top (0% in Texas and Florida, up to 13.3% in California). FICA (Social Security + Medicare) taxes add another ~7.65% for employees.

🇬🇧 United Kingdom — Income Tax + National Insurance

The UK has both income tax and National Insurance (NI) contributions, which function as separate taxes. The Personal Allowance of £12,570 is tax-free. NI is charged at 12% on earnings between £12,570 and £50,270, then 2% above that — making the combined effective rate higher than it appears from income tax alone.

🇨🇦 Canada — Federal Income Tax

Canada has federal income tax plus provincial/territorial tax. Combined marginal rates in high-income provinces (Ontario, Quebec) can exceed 50% for the highest earners. The Basic Personal Amount ($15,705 in 2024) reduces the tax you owe.

Feature	🇺🇸 US	🇬🇧 UK	🇨🇦 Canada
Tax-free threshold	$14,600 (std. deduction)	£12,570 (personal allowance)	CA$15,705 (basic personal amount)
Top federal rate	37%	45% (+2% NI)	33%
State/Provincial tax	Yes (0–13%)	No	Yes (5–26%)
Social security tax	Yes (FICA ~7.65%)	NI included above	CPP ~5.95%
VAT / Sales tax	State sales tax varies	20% VAT	GST/HST 5–15%

* This calculator provides estimates for educational purposes only. Consult a tax professional for your actual tax liability. Tax laws change annually.

Income Tax Calculator

How Income Tax Works Differently by Country

🇺🇸 United States — Federal Income Tax

🇬🇧 United Kingdom — Income Tax + National Insurance

🇨🇦 Canada — Federal Income Tax

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Sources & Methodology