Federal Income Tax Calculator
Estimate your federal income tax based on your gross income, filing status, and deductions.
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Federal Tax Owed
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Taxable Income
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Effective Rate
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After-Tax Income
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Income Breakdown
Estimate only. This calculator estimates federal income tax only. State income tax, FICA, AMT, and other taxes are not included. Consult a licensed tax professional for personalized advice.
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How Federal Income Tax Works
The US uses a progressive tax system — meaning higher portions of your income are taxed at higher rates. Understanding how brackets work helps you make smarter decisions about deductions, retirement contributions, and income timing.
- Marginal brackets apply only to each slice of income. If you are in the 22% bracket, you do not pay 22% on all your income — only on the portion above the 12% threshold. Your first dollars are still taxed at 10% and 12%.
- The standard deduction directly reduces your tax bill. Take it unless your itemized deductions (mortgage interest, state taxes capped at $10k, charitable donations) clearly exceed it. For most taxpayers, the standard deduction is the better choice.
- Tax credits are more valuable than deductions. A deduction reduces taxable income — its value depends on your bracket. A credit reduces tax owed dollar-for-dollar. The Child Tax Credit, Earned Income Credit, and education credits can significantly reduce your liability.
- Pre-tax retirement contributions lower your tax bill immediately. Every dollar contributed to a traditional 401(k) or IRA reduces your taxable income by one dollar, saving you your marginal rate in taxes. A $6,000 IRA contribution saves $1,320 in taxes if you are in the 22% bracket. See our self-employment tax calculator if you are self-employed.
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Frequently Asked Questions
Federal income tax uses progressive brackets applied to your taxable income — gross income minus deductions. Each bracket rate applies only to income within that range. Your standard or itemized deduction reduces taxable income before any brackets apply. Tax credits then reduce the resulting tax owed dollar-for-dollar.
The standard deduction reduces your taxable income before calculating tax. The amount depends on your filing status. Most taxpayers take the standard deduction rather than itemizing. Itemize only if mortgage interest, state taxes (capped at $10k), and charitable donations together exceed the standard deduction amount for your filing status.
Your marginal rate is the rate on your last dollar of income — the highest bracket you reach. Your effective rate is total tax divided by total income — your actual average rate. Because progressive brackets mean lower rates on your first dollars, your effective rate is always lower than your marginal rate.
A deduction reduces taxable income — its value depends on your bracket. A $1,000 deduction saves $220 at the 22% bracket. A credit reduces tax owed dollar-for-dollar — a $1,000 credit saves exactly $1,000 regardless of bracket. Credits are always more valuable than equal-sized deductions.
Most states charge income tax in addition to federal. Rates range from 0% in states like Florida, Texas, and Nevada to over 13% in California. This calculator estimates federal tax only. Add your state's rate to your effective federal rate to estimate your combined income tax burden.