Taxes & Income
Income Tax Calculator
Estimate your US federal income tax using the current year brackets and standard deduction, plus Social Security, Medicare and self-employment tax. See your effective rate, marginal rate and every bracket your income touches.
Estimated total tax
$14,613
Federal + estimated state
Effective tax rate
17.2%
Total tax ÷ total income
Marginal rate
22%
Rate on your next dollar earned
How the tax is built up
Standard deduction vs. itemizing
Marginal brackets your income touches
| Rate | Taxable amount | Tax |
|---|---|---|
| 10% | $12,400 | $1,240 |
| 12% | $38,000 | $4,560 |
| 22% | $10,500 | $2,310 |
Marginal brackets versus effective rate
The United States uses a progressive system, so income is taxed in slices rather than all at one rate. Moving into a higher bracket does not retroactively raise the tax on everything you earned below it — only the portion inside that bracket is taxed at the higher rate.
Your marginal rate is what your next dollar of income would cost. Your effective rate is total tax divided by total income, and it is almost always much lower. Someone with a 22% marginal rate often pays an effective federal rate closer to 12% or 14%.
The bracket table on this page shows exactly how much income fell into each band, which is the clearest way to see why total tax is lower than income multiplied by the marginal rate.
FICA and self-employment tax
Payroll taxes are separate from income tax and much harder to reduce. Employees pay 6.2% Social Security tax on wages up to the annual wage base plus 1.45% Medicare on all wages, and employers pay a matching amount you never see on your W-2.
If you have self-employment income, you pay both halves: 15.3% total on net earnings up to the Social Security wage base, then 2.9% Medicare above that. The good news is that you get to deduct half of that self-employment tax from income, which this calculator applies.
High earners also pay an extra 0.9% Additional Medicare Tax above $200,000 (single) or $250,000 (married filing jointly). It is not credited to any benefit you later receive.
Choosing between the standard deduction and itemizing
Roughly nine out of ten filers take the standard deduction, because it is simpler and very often larger. Itemizing tends to win when you have high state taxes, large mortgage interest, significant unreimbursed medical costs or substantial charitable giving.
This calculator compares the two for you. Enter your expected itemized total and it will tell you which route produces the lower tax.
- Married filing separately has its own set of rules — if one spouse itemizes, the other generally cannot take the standard deduction.
- The standard deduction is larger if you are 65 or older, or blind.
- Business expenses belong on Schedule C and reduce income before this calculation, not itemized deductions after it.
Things this estimate leaves out
This is a planning tool, not a filed return. Scope deliberately excludes items that vary enormously between filers: most above-the-line deductions beyond pre-tax retirement contributions, AMT, NIIT on investment income, education credits, EIC, retirement saver’s credit, most state specific rules, credits for energy improvements, and any local earned income taxes.
Use it to understand direction and magnitude. Use software or a CPA to decide what you actually owe.
Frequently asked questions
Is this my refund or what I owe?
It is your estimated total tax for the year. Compare it to what your employer withheld on your W-2 (Box 2) plus any estimated payments you made. If withholding exceeded the total, you get a refund; if it fell short, you owe the difference and may face an underpayment penalty.
Why is my take-home lower than the calculator shows?
Most commonly because of items not modelled here: state and local income tax, health insurance premiums, dental or vision benefits, HSA contributions made outside payroll, Roth contributions (which are after-tax), union dues, wage garnishments and 401(k) loan repayments.
Does a raise push me into a higher bracket and cost me money?
No. Only the income above each bracket threshold is taxed at the higher rate, so a raise always increases your take-home pay. It can, however, reduce eligibility for certain income-based credits or programs, which is worth checking separately.
How much should I withhold?
Use the IRS Tax Withholding Estimator or Form W-4. If you owe more than $1,000 when you file, or consistently receive large refunds, adjust your W-4. Large refunds are interest-free loans to the government.
Are dependents worth anything here?
Yes. Qualifying children under 17 may be worth up to $2,200 each through the Child Tax Credit, and other dependents may qualify for a smaller credit. Credits reduce tax dollar-for-dollar, which makes them far more valuable than deductions of the same size.
How do I lower my federal tax bill?
The most effective levers are contributing to a traditional 401(k) or IRA (which reduces taxable income), using an HSA if you have a high-deductible plan, timing capital gains to qualify for long-term rates, harvesting losses to offset gains, bunching charitable donations into one year if you itemize, and choosing a filing status that fits your situation.
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Disclaimer: Income Tax Calculator results are estimates produced from the figures you enter and publicly available reference data. They do not account for every credit, deduction, fee or local rule, and they are not tax, legal or investment advice. Verify anything you plan to act on with a qualified professional or your lender. See our financial disclaimer and privacy policy. Last data review: 2026-10-04.