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Federal Tax Visualization

Federal Tax Visualization

BostonFI
BostonFI 6,421 XP · · 3 replies

I came across this very neat online tool from engaging-data dot com to visualize Federal taxes owed. As you play with the inputs, you can very easily see the dramatic differences in tax between income from LTCG and qualified dividends (in blue) versus ordinary income and unqualified dividends (in green).

In the snapshot below, a single filer in 2026 has income of $80K yet pays only $3,587 in Federal tax (in red)—a 4.5% effective tax rate.

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Planning to retire before 59½?

Access your retirement funds early and penalty-free with this essential tax strategy.

The Roth Conversion Ladder

Replies (3)

AnotherMechEngr

AnotherMechEngr

219 XP

5 months ago

Thanks for sharing, pretty cool to see the visualization!

Charlotte

Charlotte

1,120 XP

6 months ago

I was just telling my husband on a walk the other day, "It would be so cool if someone created a tool that showed you visually, like filling up a bucket, where you landed with taxes." Thanks for sharing!

J.P. MoreGains

J.P. MoreGains

742 XP

6 months ago

Interesting to see this. I’m starting to learn more about taxes thanks for sharing

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Tax Strategies

Taxes are likely your biggest lifetime expense—but most people never learn how to reduce them. This guide breaks down exactly how to optimize your taxes so you can reach Financial Independence faster, keep more of your money, and retire earlier.</p><p>Whether you’re just starting or already well on your FI journey, this guide covers everything from tax-advantaged accounts to Roth ladders, self-employment strategies, and geographic arbitrage.

Tax Strategies Guide
Tax Strategy and Planning Guide for Financial Independence

Read our complete guide to get up to speed.

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