Estimate your federal and state income tax with current tax brackets
| Tax Rate | Income Range | Tax Owed |
|---|---|---|
| 10% | $0 - $11,925 | 10% of taxable income |
| 12% | $11,926 - $48,475 | $1,192.50 + 12% over $11,925 |
| 22% | $48,476 - $103,350 | $5,578.50 + 22% over $48,475 |
| 24% | $103,351 - $197,300 | $17,651 + 24% over $103,350 |
| 32% | $197,301 - $250,525 | $40,199 + 32% over $197,300 |
| 35% | $250,526 - $626,350 | $57,231 + 35% over $250,525 |
| 37% | $626,351+ | $188,801.75 + 37% over $626,350 |
This calculator provides an estimate based on the 2026 tax brackets. Actual tax liability may differ due to credits, itemized deductions, capital gains, self-employment tax, and other factors.
The United States uses a progressive tax system, which means that as your income increases, the portion of it that falls into higher brackets is taxed at higher rates. A common misconception is that earning more money can somehow leave you with less take-home pay because you "jumped into a higher bracket." This is not how marginal tax brackets work — only the income above each threshold is taxed at the higher rate, not your entire income.
Your marginal tax rate is the rate applied to your last dollar of taxable income. Your effective tax rate is your total tax divided by your total gross income — the actual percentage of your paycheck that goes to taxes. For most filers, the effective rate is significantly lower than the marginal rate because income is spread across multiple brackets.
Consider a single filer with $70,000 in taxable income in 2026. Using the single brackets:
The marginal rate is 22% (the bracket the last dollar falls into), but the effective federal rate is only about 14.7% ($10,314 ÷ $70,000). This is why two people can be in the "22% bracket" yet pay very different amounts.
This calculator walks through the same sequence a tax preparer follows to produce a quick estimate of your annual tax liability. Here is what happens behind the scenes when you enter your information:
Your gross income is reduced by pre-tax retirement contributions (such as a Traditional 401(k) or IRA), other pre-tax deductions (like health insurance premiums or commuter benefits), and the standard deduction for your filing status. The result is your taxable income — the amount that actually flows into the tax bracket calculation.
The calculator looks up the correct bracket set for your filing status (single, married filing jointly, married filing separately, or head of household) and walks dollar-by-dollar through each bracket, taxing each slice of income at its corresponding rate. This produces your federal income tax before any credits.
FICA consists of Social Security tax (6.2% of wages up to the wage base, which is approximately $176,100 in 2026) and Medicare tax (1.45% of all wages, plus an additional 0.9% on wages above $200,000 for single filers). Retirement contributions reduce FICA wages for Social Security but are still subject to Medicare. Self-employed individuals pay both the employee and employer halves via self-employment tax, which this tool does not estimate.
State tax is estimated by applying the rate you enter to your taxable income. Because state systems vary widely — some have no income tax, some use flat rates, and others have their own progressive brackets — this is a simplified approximation. For a precise figure, consult your state's department of revenue.
Finally, the calculator subtracts federal tax, state tax, and FICA from your gross income to arrive at your annual take-home pay, then divides by 12 for your monthly figure. The pie chart visualizes how each dollar of gross income is split between take-home pay and the three tax categories.
The IRS adjusts tax brackets annually for inflation. Below are the projected 2026 brackets for the two most common filing statuses. Remember: these are marginal rates, meaning each rate applies only to the income that falls within that specific range.
| Tax Rate | Income Range | Tax on Income in This Bracket |
|---|---|---|
| 10% | $0 – $11,925 | 10% of income |
| 12% | $11,926 – $48,475 | $1,192.50 + 12% over $11,925 |
| 22% | $48,476 – $103,350 | $5,578.50 + 22% over $48,475 |
| 24% | $103,351 – $197,300 | $17,651.00 + 24% over $103,350 |
| 32% | $197,301 – $250,525 | $40,199.00 + 32% over $197,300 |
| 35% | $250,526 – $626,350 | $57,231.00 + 35% over $250,525 |
| 37% | $626,351+ | $188,801.75 + 37% over $626,350 |
| Tax Rate | Income Range | Tax on Income in This Bracket |
|---|---|---|
| 10% | $0 – $23,850 | 10% of income |
| 12% | $23,851 – $96,950 | $2,385.00 + 12% over $23,850 |
| 22% | $96,951 – $206,700 | $11,157.00 + 22% over $96,950 |
| 24% | $206,701 – $394,600 | $35,302.00 + 24% over $206,700 |
| 32% | $394,601 – $501,050 | $80,398.00 + 32% over $394,600 |
| 35% | $501,051 – $751,600 | $114,442.00 + 35% over $501,050 |
| 37% | $751,601+ | $202,261.50 + 37% over $751,600 |
Notice that the MFJ brackets are roughly double the single brackets in the lower ranges, which is why two married earners with similar incomes often see a "marriage bonus" rather than a penalty at moderate income levels.
Every taxpayer gets to subtract either the standard deduction or their itemized deductions from gross income — whichever is larger. You should itemize only when your total itemized deductions exceed the standard deduction for your filing status.
If you are 65 or older or blind, you can claim an additional standard deduction on top of these amounts.
You should consider itemizing if your total deductible expenses are greater than your standard deduction. Common itemizable deductions include:
After the TCJA nearly doubled the standard deduction in 2018, the share of households that benefit from itemizing dropped from about 30% to roughly 10%. Most middle-income filers now take the standard deduction.
Reducing your tax bill legally comes down to three levers: lowering taxable income, shifting income into lower-tax years, and claiming every credit you qualify for. Here are the most impactful strategies for W-2 employees.
Money contributed to a Traditional 401(k), 403(b), or Traditional IRA is deducted from your taxable income in the year of contribution. In 2026, you can defer up to $23,500 in a 401(k) ($31,000 if age 50+), plus an additional catch-up of $7,500 for ages 60–63 under SECURE 2.0. A worker in the 24% bracket who maxes out a 401(k) saves roughly $5,640 in federal tax in a single year.
An HSA offers a rare triple tax advantage: contributions are pre-tax, growth is tax-free, and withdrawals for qualified medical expenses are tax-free. The 2026 contribution limit is $4,400 for self-only coverage and $8,750 for family coverage (plus a $1,000 catch-up if 55+). Unlike an FSA, HSA funds roll over year to year and can be invested for long-term growth.
A dependent care FSA or limited-purpose FSA can shelter up to $3,200 (2026 est.) from income tax for eligible medical or child care expenses. Note that FSA funds are generally "use it or lose it" within the plan year.
In taxable brokerage accounts, you can sell investments at a loss to offset capital gains and up to $3,000 of ordinary income per year. Unused losses carry forward indefinitely. Be careful to avoid a wash sale — repurchasing the same or a "substantially identical" security within 30 days disallows the loss.
Donating appreciated stock held for over a year gives a double benefit: you deduct the full fair market value and never pay capital gains tax on the appreciation. Bunching two years of donations into one year can push you above the standard deduction threshold, making itemizing worthwhile.
The American Opportunity Tax Credit provides up to $2,500 per eligible student for the first four years of college, with 40% refundable. The Lifetime Learning Credit offers up to $2,000 for continuing education with no limit on the number of years. Student loan interest paid (up to $2,500) is also deductible if you are under the income phase-out.
Where you live has a material impact on your take-home pay. State income tax systems fall into three broad categories:
Nine states levy no broad-based individual income tax: Alaska, Florida, Nevada, New Hampshire (phased out by 2025), South Dakota, Tennessee, Texas, Washington, and Wyoming. However, some of these states compensate with higher sales or property taxes, so total tax burden may not be zero.
States such as Colorado (4.40%), Indiana (3.05%), Michigan (4.25%), and Pennsylvania (3.07%) apply a single rate to all taxable income regardless of amount. Flat taxes are simple to calculate but tend to be slightly regressive since lower-income households spend a larger share of earnings on consumption.
States like California, New York, and New Jersey use multiple brackets with top rates exceeding 10% for high earners. California's top marginal rate reaches 13.3% — the highest in the nation. These states generally offer larger standard deductions or credits to reduce the burden on lower-income filers.
A single filer earning $100,000 in Texas (no state tax) keeps roughly $5,000 more per year than the same earner in California. Over a 30-year career, that difference — even invested conservatively — can amount to hundreds of thousands of dollars in wealth. Many remote workers have used this dynamic to relocate from high-tax to no-tax states.
Even experienced filers lose money to avoidable errors. Watch for these frequent pitfalls:
Many taxpayers overlook the student loan interest deduction, educator expense deduction ($300 per teacher in 2026), or the above-the-line deduction for up to $6,000 of contributions to an HSA. Even if you take the standard deduction, certain "above-the-line" deductions reduce your adjusted gross income directly.
Head of Household status offers a larger standard deduction ($22,500 vs. $15,000) and wider tax brackets than Single, but many single parents and supporting relatives fail to claim it. Review the qualifying person rules each year — supporting an aging parent may qualify you even if they don't live with you.
Income from gig work (Uber, DoorDash), freelance projects, selling goods online, or crypto transactions must be reported. Even if you don't receive a 1099, the IRS receives copies from payment platforms for transactions over $5,000 (2026 threshold). Unreported income triggers penalties and interest dating back to the original due date.
Credits are more valuable than deductions because they reduce tax dollar-for-dollar. Commonly missed credits include the Earned Income Tax Credit (EITC), Child Tax Credit (up to $2,000 per qualifying child), Child and Dependent Care Credit, and the Saver's Credit (up to $1,000 for retirement contributions if your income is below the phase-out). Roughly 20% of eligible households fail to claim the EITC each year.