Calculator · Taxes & compounding
The Lifetime Cost of Taxes
Taxes are paid every year you work — and every one of those dollars is a dollar that never earns interest again.
If those tax dollars stayed investedTotal taxes paidGrowth lost to taxes
4585
Lifetime cost by age 85
$14,972,582
What your tax dollars would have become — 7.4× what you paid.
Taxes paid
$2,015,278
$75,000 this year, rising with income until 65
Growth given up
$12,957,304
Interest those dollars never earn
Keep 15% of those taxes with planning
That's $302,292 kept over your working years — worth $2,245,887 by age 85 once it's invested.
$2,245,887
› Year-by-year numbers
| Age | Taxes paid (total) | If invested | Growth lost |
|---|---|---|---|
| 45 | $0 | $0 | $0 |
| 46 | $75,000 | $75,000 | $0 |
| 47 | $152,250 | $157,500 | $5,250 |
| 48 | $231,818 | $248,093 | $16,275 |
| 49 | $313,772 | $347,414 | $33,641 |
| 50 | $398,185 | $456,146 | $57,960 |
| 51 | $485,131 | $575,021 | $89,891 |
| 52 | $574,685 | $704,827 | $130,142 |
| 53 | $666,925 | $846,405 | $179,480 |
| 54 | $761,933 | $1,000,661 | $238,728 |
| 55 | $859,791 | $1,168,566 | $308,775 |
| 56 | $960,585 | $1,351,159 | $390,574 |
| 57 | $1,064,402 | $1,549,558 | $485,155 |
| 58 | $1,171,334 | $1,764,959 | $593,624 |
| 59 | $1,281,474 | $1,998,646 | $717,171 |
| 60 | $1,394,919 | $2,251,995 | $857,077 |
| 61 | $1,511,766 | $2,526,482 | $1,014,716 |
| 62 | $1,632,119 | $2,823,689 | $1,191,570 |
| 63 | $1,756,083 | $3,145,311 | $1,389,228 |
| 64 | $1,883,765 | $3,493,165 | $1,609,400 |
| 65 | $2,015,278 | $3,869,200 | $1,853,922 |
| 66 | $2,015,278 | $4,140,044 | $2,124,766 |
| 67 | $2,015,278 | $4,429,847 | $2,414,569 |
| 68 | $2,015,278 | $4,739,936 | $2,724,658 |
| 69 | $2,015,278 | $5,071,732 | $3,056,454 |
| 70 | $2,015,278 | $5,426,753 | $3,411,475 |
| 71 | $2,015,278 | $5,806,626 | $3,791,347 |
| 72 | $2,015,278 | $6,213,089 | $4,197,811 |
| 73 | $2,015,278 | $6,648,006 | $4,632,728 |
| 74 | $2,015,278 | $7,113,366 | $5,098,088 |
| 75 | $2,015,278 | $7,611,302 | $5,596,024 |
| 76 | $2,015,278 | $8,144,093 | $6,128,815 |
| 77 | $2,015,278 | $8,714,179 | $6,698,901 |
| 78 | $2,015,278 | $9,324,172 | $7,308,894 |
| 79 | $2,015,278 | $9,976,864 | $7,961,586 |
| 80 | $2,015,278 | $10,675,244 | $8,659,966 |
| 81 | $2,015,278 | $11,422,511 | $9,407,233 |
| 82 | $2,015,278 | $12,222,087 | $10,206,809 |
| 83 | $2,015,278 | $13,077,633 | $11,062,355 |
| 84 | $2,015,278 | $13,993,068 | $11,977,790 |
| 85 | $2,015,278 | $14,972,582 | $12,957,304 |
Illustration only. Assumes a flat effective tax rate on earned income until retirement, a constant annual raise and growth rate, end-of-year compounding, and nominal dollars. Excludes taxes in retirement. Not financial, tax, or investment advice.