After-Tax Cost of Debt Calculator
Calculate the after-tax cost of debt including tax shield savings, effective interest rates, and lifetime interest analysis for corporate and personal debt.
Biden Tax Plan Calculator
Compare the 2026 baseline tax result against the Biden-administration proposal scenario with higher top rates, capital-gains changes, and a higher NIIT rate.
2026 standard deduction: $16,100.00
2026 Current Law Tax⧉
$24,744.00
Federal tax using 2026 current-law rules
FY2025 Proposal Tax⧉
$24,744.00
Treasury Greenbook scenario
Difference⧉
+$0.00
Lower or unchanged under the proposal
Current Effective Rate⧉
16.50%
Effective rate under 2026 current law
Proposal Effective Rate⧉
16.50%
Effective rate under proposal
Taxable Income⧉
$133,900.00
Income after deductions
Tax Comparison
Current Law$24,744.00
Proposal$24,744.00
| Component | Current Law | Proposal | Change |
|---|---|---|---|
| Ordinary Income Tax | $24,744.00 | $24,744.00 | +$0.00 |
| Capital Gains Tax | $0.00 | $0.00 | +$0.00 |
| Net Investment Income Tax | $0.00 | $0.00 | +$0.00 |
| Total Tax | $24,744.00 | $24,744.00 | +$0.00 |
Planning notes, formulas, and examples
About the Biden Tax Plan Calculator
This calculator compares the 2026 baseline federal tax result against the Treasury proposal associated with the Biden administration. The baseline side uses the 2026 IRS brackets, standard deductions, capital-gains thresholds, and NIIT rules. The proposal side models the Greenbook changes most relevant to high earners: a 39.6% top ordinary rate above the stated thresholds, ordinary-rate treatment for capital gains and qualified dividends above the proposal threshold, and a higher NIIT rate on investment income above the proposal threshold.
The calculator is a scenario tool, not an enacted-law filing system. Use it to see which layer of tax changes first: ordinary income, capital gains, or NIIT.
When This Page Helps
Tax planning requires understanding both baseline law and the policy direction that would matter if a proposal became law. This calculator helps higher-income taxpayers model how the top bracket, capital gains treatment, and NIIT changes would alter the result without pretending the proposal has already been enacted.
How to Use the Inputs
- Enter your gross annual income
- Select your filing status
- Enter deductions, or start from the standard deduction shown
- Add capital gains and qualified dividends if applicable
- Compare the baseline tax and the proposal scenario
- Review the breakdown by tax component
- Use presets to model common income ranges
Formula used
Baseline law (2026): ordinary brackets, capital gains rates, and NIIT follow IRS 2026 thresholds by filing status.
Proposal scenario: 39.6% top ordinary rate above $400,000 single, $225,000 MFS, $425,000 HOH, and $450,000 MFJ/QSS; capital gains and qualified dividends taxed at ordinary rates above $1,000,000 taxable income ($500,000 MFS); NIIT increased to 5% above the proposal threshold.Example Calculation
Result: Current law $148,484 vs proposal $153,004
At this income level, the baseline side uses the 2026 brackets and the 15% long-term capital-gains rate, while the proposal pushes ordinary income above the status threshold to 39.6% and raises NIIT on investment income above the proposal threshold. The gap is driven mostly by the ordinary-income portion.
Tips & Best Practices
- The biggest change is usually the ordinary-income layer above the proposal threshold
- Investment income above the proposal threshold is where the capital-gains and NIIT changes bite
- Keep filing status accurate, because the proposal thresholds vary by status
- Use the baseline side to sanity-check the 2026 result before comparing the proposal
- This is a planning model, not a return-prep calculator
What This Models
This calculator compares 2026 baseline law against a Treasury proposal scenario. The baseline uses the IRS 2026 brackets and capital-gains thresholds, while the proposal side replaces the top ordinary rate and changes how very large capital gains and dividends are treated.
When It Matters
The difference is usually concentrated at the top ordinary bracket and then widens if the taxpayer has substantial investment income. Filing status matters because the proposal thresholds are not the same for every filer.
Key Checkpoints
Use the comparison to separate ordinary income effects from investment-income effects, then verify deductions and filing status before relying on the result for planning.
Sources & Methodology
Last updated:
Methodology
Baseline calculations use IRS-published 2026 inflation-adjusted amounts for ordinary brackets, standard deductions, long-term capital-gains thresholds, and the 3.8% NIIT threshold. The proposal side is a static Treasury Greenbook scenario: it keeps the baseline bracket stack up to the proposal threshold, then applies the proposed 39.6% top ordinary rate, ordinary treatment of capital gains and qualified dividends above the proposal threshold, and the proposed 5% NIIT rate above the proposal threshold.
Sources
- IRS releases tax inflation adjustments for tax year 2026, including amendments from the One, Big, Beautiful Bill (Internal Revenue Service) — 2026 ordinary brackets and standard deduction amounts
- Revenue Procedure 2025-32 (Internal Revenue Service) — 2026 maximum capital-gains zero/15% amounts and child tax credit amount
- Topic no. 559, Net investment income tax (Internal Revenue Service) — 3.8% NIIT threshold amounts
- General Explanations of the Administration's Fiscal Year 2025 Revenue Proposals (U.S. Department of the Treasury) — FY2025 proposal thresholds and rate changes
Frequently Asked Questions
The biggest differences show up for higher-income taxpayers, especially those above the proposal threshold for ordinary income or with substantial capital gains and dividends.
The proposal scenario raises the top ordinary rate to 39.6% above the status-specific threshold used on this page.
The proposal scenario models capital gains and qualified dividends as ordinary income above the taxable-income threshold shown in the calculator.
This is a policy-scenario tool, not enacted law. Real-world timing depends on legislation and effective dates.
The comparison keeps the 2026 standard deductions on the baseline side. The proposal side changes the tax rates and investment-income treatment rather than rewriting the deduction input.
The baseline NIIT remains 3.8%. The proposal models a higher 5% rate above the proposal threshold for investment income.
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