Author Topic: Interactive, income tax bracket calculator / visualizations that I made  (Read 1764 times)

CCCA

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I've made a few money/finance/FI related calculators and visualizations and I made a couple tax related ones recently that I thought I'd share.  I think people here might enjoy playing with the calculators as interactivity and visuals can help you understand tax rates even if you already understand them mathematically.

The first is a sankey diagram of federal income tax (it doesn't include payroll taxes or state and local taxes):

Just choose your filing status and enter your income both regular and capital gainsidends and it'll distribute your income into different tax brackets where you can see how much is taxed vs kept.  You can hover over the various links to get more information.  If you make alot of income, the graph gets really big so watch out.

The 2nd calculator is a more holistic view of taxes across all incomes.  It attempts to also show the fraction of income in each of the tax brackets. Basically you can hover (or click on mobile) on the graph to move the vertical dashed line to a specific income level (shown at the bottom).  THat line then cuts across a bunch of different tax brackets, i.e. "bands" (regular and capital gains).  The amount of the line in each tax band is the amount of your income subject to that tax rate. This one seems maybe a little more confusing to people that I've shared it with.





One of the things to look at is the fraction of income coming from capital gains vs regular income (via the slider on top).  If you can shift your income to be mostly from capital gains, you can reduce your tax rate significantly.



I hope you find this interesting and maybe helpful. Feel free to share it to whoever and as always, I appreciate any feedback, suggestions etc. . . for making it clearer, better, more useful.


**sorry for clogging up for forum with duplicate posts**.  The forum seemed to be frozen for me so I tried posting several times and eventually they all went through.
« Last Edit: February 12, 2019, 12:34:27 PM by CCCA »

shingy

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Re: Interactive, income tax bracket calculator / visualizations that I made
« Reply #1 on: February 13, 2019, 07:37:12 PM »
I'm surprised that I'm the first to reply! Very cool stuff, CCCA. Thanks for sharing.

CCCA

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Re: Interactive, income tax bracket calculator / visualizations that I made
« Reply #2 on: February 14, 2019, 12:51:31 PM »
I'm surprised that I'm the first to reply! Very cool stuff, CCCA. Thanks for sharing.


It is a little quiet in this section of the forum, maybe I should have shared it in the welcome forum. Oh well. thanks for thanking!

Curmudgeon

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Re: Interactive, income tax bracket calculator / visualizations that I made
« Reply #3 on: February 14, 2019, 01:58:28 PM »
Very nice, thank you for sharing this!

BlueHouse

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Re: Interactive, income tax bracket calculator / visualizations that I made
« Reply #4 on: February 14, 2019, 02:15:49 PM »
As usual, your visualizations are excellent. 
I just paid another visit to your site and found the Market Timing game.  How did I miss that before?  Is it new?  It's wonderful.  I can't wait to share that!

Livingthedream55

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Re: Interactive, income tax bracket calculator / visualizations that I made
« Reply #5 on: February 15, 2019, 07:35:39 AM »
I really appreciate this!  Fantastic tool for estimating taxes in FIRE. 

Hvillian

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@CCCA   Congrats - you are famous.  This has been picked up and shared by quite a few outlets.

https://www.visualcapitalist.com/how-americans-make-spend-money/

CCCA

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@CCCA   Congrats - you are famous.  This has been picked up and shared by quite a few outlets.

https://www.visualcapitalist.com/how-americans-make-spend-money/


Hi Hvillian,
thanks, yes, I saw that.  It's nice to see that I'm not the only one who gets something out of this.  The data viz stuff is fun and keeping me busy in semi-RE.  It's a nice creative outlet for me (creative for a techie like myself, anyway).
« Last Edit: March 28, 2019, 05:52:42 PM by CCCA »

Lindyhopper

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TY, the sankey graph as very helpful.

fatcow240

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Very cool visualizations.


I wanted to look at $12k income and $30k Capital Gain Income.


https://engaging-data.com/tax-brackets/?fs=1&reg=12000&cg=30000


The graphic doesn't look right.  The numbers come out correctly, but the Capital Gain isn't shown in Standard Deduction or Capital Gains part of the graphic.  The issue appears to be if the regular income is below the standard deduction.

SunshineAZ

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Re: Interactive, income tax bracket calculator / visualizations that I made
« Reply #10 on: March 29, 2019, 11:05:12 AM »
Just a comment to say thank you for your work.  I love the visual aspect of your charts and graphs and it makes it easier to explain to the  math challenged people.  :)  This new one is great, it helps visualize the "income tax buckets" concept. 

CCCA

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Re: Interactive, income tax bracket calculator / visualizations that I made
« Reply #11 on: March 29, 2019, 11:35:29 AM »
Very cool visualizations.


I wanted to look at $12k income and $30k Capital Gain Income.


https://engaging-data.com/tax-brackets/?fs=1&reg=12000&cg=30000


The graphic doesn't look right.  The numbers come out correctly, but the Capital Gain isn't shown in Standard Deduction or Capital Gains part of the graphic.  The issue appears to be if the regular income is below the standard deduction.


Hi,
You found a bug! So I just fixed it and now I think it'll work properly. Yes, part of the capital gains that should have gone to the standard deduction wasn't making it there.  Thanks for pointing that out.

CCCA

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Re: Interactive, income tax bracket calculator / visualizations that I made
« Reply #12 on: March 29, 2019, 11:36:17 AM »
Just a comment to say thank you for your work.  I love the visual aspect of your charts and graphs and it makes it easier to explain to the  math challenged people.  :)  This new one is great, it helps visualize the "income tax buckets" concept.


thanks, I appreciate the kind words.

fatcow240

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Re: Interactive, income tax bracket calculator / visualizations that I made
« Reply #13 on: April 01, 2019, 01:29:14 PM »
...I just fixed it and now I think it'll work properly...


Thanks for the quick fix.  Again, really useful visualization.  I feel that when I start talking LTCG and tax brackets, eyes glaze over.  Now I can just show a few charts.

BabyShark

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Re: Interactive, income tax bracket calculator / visualizations that I made
« Reply #14 on: April 01, 2019, 01:49:54 PM »
ugh these are so cool

pmac

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Re: Interactive, income tax bracket calculator / visualizations that I made
« Reply #15 on: April 02, 2019, 06:31:46 PM »
amazing graph.

Is there anyway to see add FICA/Self Employment Tax? Would love to see how much people spend on those taxes.

The Capital Gains rates looks even better when you don't have to pay FICA on them.

Thanks for the great tool @CCCA

CarolinaGirl

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Re: Interactive, income tax bracket calculator / visualizations that I made
« Reply #16 on: April 02, 2019, 06:44:03 PM »
Quite interesting!  Thanks!

ender

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Re: Interactive, income tax bracket calculator / visualizations that I made
« Reply #17 on: April 02, 2019, 06:47:46 PM »
Would be cool to put deductions in there but it's a bit more complicated than the purpose I think :)

CCCA

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Re: Interactive, income tax bracket calculator / visualizations that I made
« Reply #18 on: April 18, 2019, 04:45:25 PM »

I made another tax visualization though this one is about how much each state pays in taxes:
https://engaging-data.com/taxes-state/


Lots of info can be visualized by state:

  • Mean Federal Tax Paid
  • Mean Adjusted Gross Income
  • Mean State/Local Tax
  • Mean Combined (Fed/State/Local) Tax
  • Percent Income from Dividends and Capital Gains
  • Percent of Returns with Itemized Deductions
  • Number of Tax Returns
  • Mean Federal Tax Rate
  • Mean State/Local Tax Rate
  • Mean Combined (Fed/State/Local) Rate
  • Total Federal Tax Liability

Would be cool to put deductions in there but it's a bit more complicated than the purpose I think :)


I'm trying to figure out the best way to do deductions, probably a simple one where you can just enter your total deductions, not individual ones since I don't really want to get into calculating all of the phaseouts, etc. . .


amazing graph.

Is there anyway to see add FICA/Self Employment Tax? Would love to see how much people spend on those taxes.

The Capital Gains rates looks even better when you don't have to pay FICA on them.

Thanks for the great tool @CCCA


This is a good idea and I have this on my list of things to do. 


thanks!

Hvillian

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Re: Interactive, income tax bracket calculator / visualizations that I made
« Reply #19 on: April 19, 2019, 01:14:27 PM »
I made another tax visualization though this one is about how much each state pays in taxes:
https://engaging-data.com/taxes-state/

Interesting and easy to understand, although I've come to expect a wider color palette out of you. ;)
I especially like the "Federal Tax Paid Per Electoral Vote."

Goldielocks

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Re: Interactive, income tax bracket calculator / visualizations that I made
« Reply #20 on: April 19, 2019, 02:20:36 PM »
Amazing.

I never realized how large Australia really is, relative to USA and Canada.   I always thought it was up to half the size of the US and it is not.. it is nearly 80% the size of the USA in land area.  (Yeah, I spent some time on your site).

The market timing graph -- the top of the market one, really is powerful to remind us to keep the money in there.  I gotta do that and I alway hold back because that cash is my "for a dip)!  Duh.  There it (the market) goes up again.

DavidAnnArbor

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Re: Interactive, income tax bracket calculator / visualizations that I made
« Reply #21 on: April 19, 2019, 02:44:45 PM »
Wow loved the market timing game.

https://engaging-data.com/market-timing-game/