{
  "address": "57771bb59efa74ddef7bcdbcdbd2c6ec",
  "category": "other",
  "question": "For a single filer with $75000 of taxable income in tax year 2026 (IRS Rev. Proc. 2025-32, Section 4.01, dated 2026-09-30), what is the marginal tax rate and the effective tax rate?",
  "answer": "Marginal rate 22.00%, effective rate 14.95%",
  "askedBy": {
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    "display": "method deck",
    "stamped": false,
    "id": null
  },
  "answeredBy": "method",
  "madeAt": "2026-09-30T22:39:30.722Z",
  "validUntil": null,
  "validityClass": "forever",
  "sources": [
    {
      "label": "Rev. Proc. 2025-32, Section 4.01 (2026 Tax Rate Tables, Tables 1-3)",
      "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf"
    }
  ],
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  "supersededBy": null,
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  "unpublishedAt": null,
  "voteCount": 0,
  "queuedForSubstrate": false,
  "answerMethod": "method",
  "unsourced": false,
  "source": {
    "kind": "url",
    "value": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf",
    "retrieved_utc": "2026-09-30T19:31:29Z"
  },
  "qsha256": "561499e5d18f31dea49e1b5d21098e1cb49adcbb36147d5302b28941dff0e9f8",
  "runOne": null,
  "cardContractVersion": "card_contract/1",
  "deck_id": "method-deck",
  "deck_title": "Method Deck",
  "method": {
    "name": "Marginal vs. effective tax rate, by tax year",
    "version": "1",
    "source_url_or_file": "methods/marginal-vs-effective-tax-rate.cjs",
    "sha256_of_method_file": "e1448a0768d0c07a05d7f0f4e2de15ef72615b54816670eb8dc9c7b1902f7640"
  },
  "receipt": {
    "inSubstrate": false,
    "local": true,
    "modelCallsAtMint": 0,
    "tokensAtMint": 0
  },
  "method_deck": {
    "inputs": [
      {
        "name": "filing_status",
        "type": "string",
        "required": true,
        "description": "Filing status",
        "enum": [
          "single",
          "married_filing_jointly",
          "head_of_household"
        ]
      },
      {
        "name": "taxable_income",
        "type": "number",
        "unit": "currency units",
        "required": true,
        "description": "Taxable income for the chosen tax year (after deductions)",
        "min": 0.01
      },
      {
        "name": "tax_year",
        "type": "string",
        "required": true,
        "description": "Which year's published IRS bracket table to use. Only 2026 is built into this method today; a later year requires adding its table.",
        "enum": [
          "2026"
        ]
      },
      {
        "name": "tax_year_source",
        "type": "string",
        "required": true,
        "description": "Citation for the tax_year bracket table (for example the IRS revenue procedure); change it together with tax_year when a newer year is added."
      },
      {
        "name": "tax_year_date",
        "type": "string",
        "unit": "ISO date",
        "required": true,
        "description": "The date the cited tax_year table was retrieved or published."
      }
    ],
    "outputs": [
      {
        "name": "tax_owed",
        "unit": "currency units",
        "description": "Total federal income tax owed for the chosen tax year"
      },
      {
        "name": "marginal_rate_percent",
        "unit": "%",
        "description": "Tax rate applied to the last dollar of taxable income"
      },
      {
        "name": "effective_rate_percent",
        "unit": "%",
        "description": "tax_owed divided by taxable_income, as a percent"
      }
    ],
    "steps": [
      "The visitor supplies tax_year (which published IRS bracket table to use) plus tax_year_source and tax_year_date, the citation for that table; this method never looks up or fetches a table itself.",
      "Select the bracket table for tax_year and filing_status.",
      "Find the bracket row where taxable_income falls; that row's rate is the marginal_rate_percent. Boundaries are inclusive of the upper bound: income exactly at a bracket's upper threshold is taxed and rated in that (lower) bracket, matching the IRS table's 'not over' wording; the next bracket applies only to income strictly greater than the threshold.",
      "tax_owed = the row's base amount plus its marginal rate times (taxable_income minus the row's lower bound), rounded to 2 decimals.",
      "effective_rate_percent = tax_owed / taxable_income * 100, rounded to 2 decimals."
    ],
    "constants": [
      {
        "name": "single_2026_brackets",
        "value": "10% to $12,400; 12% to $50,400; 22% to $105,700; 24% to $201,775; 32% to $256,225; 35% to $640,600; 37% above",
        "unit": "rate schedule",
        "source": 0
      },
      {
        "name": "married_filing_jointly_2026_brackets",
        "value": "10% to $24,800; 12% to $100,800; 22% to $211,400; 24% to $403,550; 32% to $512,450; 35% to $768,700; 37% above",
        "unit": "rate schedule",
        "source": 0
      },
      {
        "name": "head_of_household_2026_brackets",
        "value": "10% to $17,700; 12% to $67,450; 22% to $105,700; 24% to $201,750; 32% to $256,200; 35% to $640,600; 37% above",
        "unit": "rate schedule",
        "source": 0
      }
    ],
    "examples": [
      {
        "name": "worked example",
        "inputs": {
          "filing_status": "single",
          "taxable_income": 75000,
          "tax_year": "2026",
          "tax_year_source": "IRS Rev. Proc. 2025-32, Section 4.01",
          "tax_year_date": "2026-09-30"
        },
        "expected": {
          "answer": "Marginal rate 22.00%, effective rate 14.95%"
        },
        "check": "hand computation: tax_owed = 11212.00 (see us-federal-income-tax-2026-brackets); marginal = 22.00% (bracket rate); effective = 11212.00/75000*100 = 14.9493..., rounds to 14.95%"
      },
      {
        "name": "test vector: head of household lower income",
        "inputs": {
          "filing_status": "head_of_household",
          "taxable_income": 30000,
          "tax_year": "2026",
          "tax_year_source": "IRS Rev. Proc. 2025-32, Section 4.01",
          "tax_year_date": "2026-09-30"
        },
        "expected": {
          "answer": "Marginal rate 12.00%, effective rate 10.82%"
        },
        "check": "hand computation: 30000 falls in the 12% bracket over 17700; tax = 1770 + 0.12*(30000-17700) = 1770+1476 = 3246.00; effective = 3246.00/30000*100 = 10.82%"
      },
      {
        "name": "test vector: single filer exactly at a bracket boundary",
        "inputs": {
          "filing_status": "single",
          "taxable_income": 50400,
          "tax_year": "2026",
          "tax_year_source": "IRS Rev. Proc. 2025-32, Section 4.01",
          "tax_year_date": "2026-09-30"
        },
        "expected": {
          "answer": "Marginal rate 12.00%, effective rate 11.51%"
        },
        "check": "hand computation: 50400 is exactly the upper bound of the 12% bracket; the IRS 'not over 50400' wording keeps it there, so marginal = 12.00% and tax = 1240+0.12*(50400-12400) = 5800.00; effective = 5800.00/50400*100 = 11.5079...%, rounds to 11.51%"
      }
    ],
    "disclaimer": "General federal tax formula only, using the officially published IRS brackets for the chosen tax year. Not tax advice. Consult a licensed tax professional or the IRS for your actual return.",
    "deck_category": "tax"
  },
  "status": "minted",
  "kind": "method",
  "provenanceClass": "own_question",
  "provenance": {
    "schema": "card_provenance/2.0.0",
    "chain": [
      {
        "source": {
          "kind": "url",
          "value": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf",
          "retrieved_utc": "2026-09-30T19:31:29Z"
        },
        "sha256": "dd545a68498356c27eb59257f32910fd84d00918d43fb6343d88909c17deb4ba",
        "supersedes": null,
        "added_utc": "2026-09-30T22:39:30.722Z",
        "added_by": "method:Marginal vs. effective tax rate, by tax year",
        "why": "the method that computed this answer",
        "check": null,
        "status_label": "pending",
        "signature": null
      }
    ]
  }
}