Biden's Tax Plan Calculator
Compare your federal taxes under current law vs. Biden's proposed tax plan. Calculate income tax, capital gains, payroll taxes, and credits.
About
Federal tax liability depends on marginal bracket placement, filing status, and the interaction between ordinary income, capital gains, and payroll taxes. Biden's budget proposals target taxpayers with income above $400,000 by restoring the top marginal rate to 39.6%, taxing long-term capital gains as ordinary income above $1,000,000, and applying Social Security payroll tax on earnings exceeding $400,000 (the "donut hole"). Miscalculating these overlapping provisions leads to inaccurate withholding, estimated payment shortfalls, or missed planning opportunities. This calculator applies both rulesets to the same income profile so you can quantify the difference in dollars, not talking points.
The tool uses 2024 inflation-adjusted brackets under current law (Tax Cuts and Jobs Act) and compares them against the proposed rates from Biden's FY2025 budget. It approximates net effects assuming full-year residency, no AMT, and no state taxes. Child Tax Credit expansion figures reflect the proposed $3,600 per child under 6 and $3,000 per child aged 6 - 17, versus the current $2,000. Pro tip: the calculator does not model state-level interactions or the SALT deduction cap debate. For incomes under $400,000, the two plans produce nearly identical results.
Formulas
Federal income tax is computed by applying marginal rates to each taxable income slice. Taxable income equals gross income minus the greater of the standard deduction or itemized deductions.
Where T = total federal income tax, ri = marginal rate for bracket i, I = taxable income, bi = upper bound of bracket i, and bi−1 = lower bound.
The effective tax rate is computed as:
The Biden plan delta is: ΔT = TBiden − TCurrent. A positive ΔT means higher liability under the proposal. For capital gains above $1,000,000, the Biden plan replaces preferential rates with ordinary income rates, increasing the marginal rate from 23.8% (including NIIT) to as high as 44.6%.
Social Security payroll tax under current law applies 6.2% only up to $168,600. The Biden proposal reapplies this rate on wages above $400,000, creating a gap ("donut hole") between $168,600 and $400,000 where no additional SS tax is owed.
Reference Data
| Bracket | Single (Current Law) | Married Filing Jointly (Current Law) | Current Rate | Biden Proposed Rate |
|---|---|---|---|---|
| 1 | $0 - $11,600 | $0 - $23,200 | 10% | 10% |
| 2 | $11,601 - $47,150 | $23,201 - $94,300 | 12% | 12% |
| 3 | $47,151 - $100,525 | $94,301 - $201,050 | 22% | 22% |
| 4 | $100,526 - $191,950 | $201,051 - $383,900 | 24% | 24% |
| 5 | $191,951 - $243,725 | $383,901 - $487,450 | 32% | 32% |
| 6 | $243,726 - $609,350 | $487,451 - $731,200 | 35% | 35% |
| 7 | $609,351+ | $731,201+ | 37% | 39.6% |
| Long-Term Capital Gains Rates | ||||
| LTCG 1 | $0 - $47,025 | $0 - $94,050 | 0% | 0% |
| LTCG 2 | $47,026 - $518,900 | $94,051 - $583,750 | 15% | 15% |
| LTCG 3 | $518,901+ | $583,751+ | 20% | 20% |
| LTCG 4 | Income > $1,000,000 | 20% | 39.6% (as ordinary) | |
| Net Investment Income Tax (NIIT) | ||||
| NIIT | > $200,000 | > $250,000 | 3.8% | 5.0% |
| Payroll Tax (Social Security - Employee Share) | ||||
| SS Tax | Wages up to $168,600 | 6.2% | 6.2% | |
| Donut Hole | Wages $168,601 - $400,000 | 0% | 0% | |
| Above Donut | Wages > $400,000 | 0% | 6.2% | |
| Child Tax Credit | ||||
| Under 6 | Per qualifying child | $2,000 | $3,600 | |
| Ages 6-17 | Per qualifying child | $2,000 | $3,000 | |
| Standard Deduction (2024) | ||||
| Single | - | $14,600 | ||
| MFJ | - | $29,200 | ||
| HoH | - | $21,900 | ||