Income Tax Calculator
Estimate federal income tax, marginal and effective rates from progressive brackets.
Inputs
Rules and thresholds differ by year. Pick the year you are filing for.
The standard deduction is used unless itemizing beats it.
Reduces taxable income before deductions are applied.
Federal Income Tax
$9,870
After-Tax Income
$75,130
Monthly Take-Home
$6,261
Taxable Income
$68,900
Marginal Tax Rate
22%
The rate applied to your last dollar earned.
Effective Tax Rate
14.33%
Total tax as a share of taxable income.
Deduction Applied
$16,100
Tax Year
2026
Step by step
Using 2026 tax year rules
2026 figures from IRS Rev. Proc. 2025-32, reflecting the One Big Beautiful Bill Act.
Start from gross income
= $85,000
Subtract pre-tax contributions
$85,000 − $0
= $85,000
Subtract the deduction
$85,000 − $16,100
= $68,900
Apply each bracket in turn
$12,400 × 10% + $38,000 × 12% + $18,500 × 22%
= $9,870
Effective rate on taxable income
$9,870 ÷ $68,900
= 14.33%
Tax by bracket
| Bracket | Rate | Taxed at this rate | Tax |
|---|---|---|---|
| $0 – $12,400 | 10% | $12,400 | $1,240 |
| $12,400 – $50,400 | 12% | $38,000 | $4,560 |
| $50,400 – $105,700 | 22% | $18,500 | $4,070 |
How it works
The US federal income tax is progressive: your income is sliced across brackets and each slice is taxed at its own rate. That's why your marginal rate — the rate on your last dollar — is always higher than your effective rate, which is the total tax divided by taxable income. This calculator subtracts pre-tax contributions first, then applies the larger of your standard or itemized deduction, then walks the brackets for your selected tax year and filing status. Figures depend on the selected tax year; choose the year you are filing for.
Formulas
Taxable income
Taxable income = Gross income − Pre-tax contributions − Deduction
- G
- Gross annual income
- C
- Pre-tax contributions (401k, HSA)
- D
- Standard or itemized deduction
- T
- Taxable income
Progressive tax
Tax = Σ (income falling in each bracket × that bracket's rate)
- l_i
- Lower bound of bracket i
- u_i
- Upper bound of bracket i
- r_i
- Marginal rate of bracket i
This is an estimate for informational purposes based on the selected tax year's federal brackets. It does not account for credits, AMT, capital gains rates, state tax or FICA. Consult a tax professional for filing decisions.
Frequently Asked Questions
Why is my effective rate lower than my tax bracket?
Being 'in the 24% bracket' only means your last dollar is taxed at 24%. Everything below that threshold is taxed at 10%, 12% and 22% in turn, so your overall effective rate is always lower than your top marginal rate.
Does this include state, Social Security or Medicare tax?
No — this is federal income tax only. FICA taxes (6.2% Social Security up to the wage base, plus 1.45% Medicare) and any state or local income tax are separate. Use the Take-Home Paycheck Calculator for a complete picture.
Should I itemize or take the standard deduction?
Take whichever is larger. This calculator does that automatically: if you select itemized but your total is below the standard deduction, it applies the standard deduction instead.
Which tax year does this use?
You can select 2024, 2025, or 2026 from the Tax Year field at the top. The calculator uses that year's brackets and standard deductions exactly. This matters because people file late, amend prior returns, and plan across years — the year selector ensures you always see the right numbers.