Income Tax Calculator
Calculate income taxes, deductions, and tax planning strategies.
Tax Information
Gross annual income
Tax Results
After-Tax Income
10.23% effective rate
Federal Tax
22% marginal
State Tax
Estimated
Tax Breakdown
Tax Brackets (single)
Tax Tips
- • Marginal rate applies only to income above each bracket
- • Effective rate is your actual tax percentage
- • Consider tax-deferred retirement contributions
- • This is an estimate - consult a tax professional
How it works
US federal income tax is progressive: your taxable income is sliced into brackets and each slice is taxed at its own rate. Only the income above each threshold is taxed at the higher rate — so moving into a new bracket never lowers your take-home pay. Your effective (average) rate is therefore always lower than your top marginal rate.
Tax owed & effective rate
Tax = Σ (income in each bracket × that bracket's rate) Effective rate = Tax ÷ taxable income
- taxable income
- gross income minus deductions (e.g. the standard deduction)
- marginal rate
- the rate on your last dollar (your top bracket)
- effective rate
- total tax ÷ income — your true average rate
Worked example
- Single filer, 2024 brackets
- Taxable income = $60,000
- Brackets: 10% to $11,600 · 12% to $47,150 · 22% above
- 11,600 × 10% = $1,160
- (47,150 − 11,600) × 12% = $4,266
- (60,000 − 47,150) × 22% = $2,827
Tax ≈ $8,253 — a 13.8% effective rate, even though the top marginal bracket is 22%.
Good to know
- Brackets apply to taxable income, not gross pay — subtract the standard deduction ($14,600 single / $29,200 married in 2024) or itemized deductions first.
- A raise that pushes you into the next bracket only taxes the portion above the threshold at the higher rate; the rest is unchanged.
- This covers federal tax only — state income tax (and FICA payroll tax) are separate and stack on top.
Related Calculators
Frequently Asked Questions
How do federal tax brackets actually work?
US brackets are marginal: each rate applies only to income within that bracket's range, not your whole income. Moving into a higher bracket never reduces take-home pay — only the dollars above the threshold are taxed at the higher rate.
What is the standard deduction?
The standard deduction is income shielded from federal tax with no itemizing required — $16,100 for single filers in 2026 (roughly double for married filing jointly). You subtract it (or your itemized deductions, if larger) from gross income to get taxable income.
What's the difference between marginal and effective tax rates?
Your marginal rate is the rate on your last dollar earned — your top bracket. Your effective rate is total tax divided by total income, which is always lower because earlier dollars were taxed in lower brackets (and some weren't taxed at all).
Should I itemize or take the standard deduction?
Take whichever is larger. Itemizing wins when deductions like mortgage interest, state and local taxes (subject to caps), and charitable gifts together exceed your standard deduction — which, since the standard deduction grew, applies to a minority of filers.
How can I lower my taxable income?
Pre-tax contributions are the main levers: 401(k) deferrals (up to $24,500 in 2026), traditional IRA contributions (up to $7,500 in 2026, subject to deduction rules), HSA contributions if eligible, and FSA contributions all reduce taxable income dollar-for-dollar.