How do I calculate what my tax rates will be when I retire?

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Predicting future tax rates is an imperfect art at best! Taxes are the government’s primary source of revenue, and as such, future tax rates will depend on government spending, and obligations (existing debt (e.g. Treasury Notes) and other promises to pay people (e.g. Social Security or Medicare). In general, the rule of thumb is that If you are fairly young today, it is likely that you are at the start of your full earning potential, and in a lower income tax-bracket than you retire. If you are closer to retirement, you can approximate your retirement tax rate by calculating how much income you’ll have via your investments and other sources of retirement income (e.g. social security, pensions etc)