Calculator

Deduction vs. Credit Calculator

See exactly how much tax the same dollar amount saves you as a deduction versus as a credit, at your marginal rate.

← Read the Tax Deductions vs. Tax Credits concept page

Deduction or credit amount

Your marginal tax rate

Tax saved as a credit

$1,000.00

Tax saved as a deduction

$240.00

Difference

$760.00

How the math works

Deduction: $1,000.00 × 24.0% marginal rate = $240.00 saved
Credit:    $1,000.00 × 100% (dollar for dollar)     = $1,000.00 saved

The credit always saves the full $1,000.00, no matter your bracket. The deduction only saves your marginal rate times the amount — at 24.0%, that's $760.00 less than the credit would save, for the exact same dollar amount.