About the Income Tax Calculator
US federal income tax is progressive: income is taxed in layers, not all at once. Each dollar of the first $12,400 (single, 2026) pays 10%; dollars beyond that climb through 12%, 22%, 24%, 32% and 35% up to the 37% band at $640,600+.
This tool applies the official 2026 brackets (IRS Publication 15-T / Rev. Proc. 2025-32) to your taxable income — income minus your deduction — and reports the total tax, the marginal rate on the next dollar, and the effective rate across the whole income.
The formula behind it
Layered (bracket) math on taxable income:
Tax = Σ (band rate × income inside that band)First, taxable income = gross − deductions (the 2026 standard deduction is $16,100 single / $24,150 HH / $32,200 MFJ). Then each bracket band multiplies its rate by the slice of income falling inside it. The result is before credits and state tax — which is exactly why the tool calls it an estimate.
Worked example
Defaults — $95,000 gross, single filer claiming the $16,100 standard deduction:
- Taxable income = $95,000 − $16,100 = $78,900.
- Taxes: 10% × $12,400 = $1,240; 12% × (50,400 − 12,400) = $4,560; 22% × (78,900 − 50,400) = $6,270.
- Total = $12,070 → effective rate 12.7% of gross; marginal rate 22%.
Takeaway: The distinction matters: your marginal rate (22%) is what a raise or a deduction costs or saves; the effective rate (12.7%) is what you actually pay on the whole income.
What moves the result
- Filing status — brackets differ enormously by status; a joint return halves the band widths.
- Deductions — the standard vs itemized choice often swings thousands; the 2026 standard deduction is up significantly from prior years.
- Above-the-line items — 401k/IRA/HSA contributions, FSA elections and similar reduce taxable income before brackets apply.
- Credits — the Child Tax Credit ($2,200 for 2025, inflation-adjusted upward in 2026) and EITC cut the tax dollar-for-dollar after the brackets are done.
Practical tips
- Credits beat deductions at the margin: a $1,000 credit saves $1,000; the same deduction saves only your marginal rate × $1,000.
- Retirement plan deferrals are the cleanest bracket shaper — every recorded pre-tax dollar lowers today’s marginal cost.
- For bonuses or RSU payouts, marginal-rate surprises come from withholding pools, not the tax itself; what matters is total in vs total tax.
- For a precision return calculation (state tax, credits, itemization), use a full filing tool at the year end; inline this estimator only for planning.
- For a $2,200-per-child credit, 2025 base amounts and inflation adjustment tightening — confirm current-year figures on the IRS page below before planning deductions.
Frequently asked questions
Are these figures current 2026 brackets?
Yes — they reflect IRS Revenue Procedure 2025-32 (2026 tax rate tables: single $12,400 to $640,600+ bands with 37% at $640,600+; MFJ bands double those; standard deductions $16,100/$24,150/$32,200).
What about state income tax? Self-employment tax?
This is federal-only (state and SE tax are additional). Most states run 0–11% marginal rates on top.
Can this tool tell me my refund?
No — a refund depends on withholding, credits and true eligible expenses. Use this for pre-year planning; your return software handles the final reconciliation.