Money ManagementETF vs Mutual Fund: Which Is Better for Beginners?
ETF vs Mutual Fund: Which Is Better for Beginners? Explore costs, tax implications, and trading flexibility for informed investment decisions.
MAJun 11, 2026Read More →
Income Tax Calculator
Estimate your federal income tax in seconds. Enter your gross income, pick a filing status, add any extra deductions, then press Calculate to see your tax and effective rate.
Written by TopicDrill Editorial Team·Updated June 2026
Tax owed by bracket
Each bar is the tax from one marginal rateAdvertisement
How the income tax calculator works
The calculator starts from your gross income and subtracts the standard deduction for your filing status, plus any extra deductions you enter. What remains is your taxable income, which is then run through the progressive 2024 federal brackets one rate at a time. The tax from each bracket is added together to produce your total.
The chart breaks the result into bars, one per bracket you reach. It makes the progressive system visible: only the income that lands in a higher band is taxed at that higher rate, never your whole salary.
A quick example
Suppose a single filer earns 85,000 dollars. After the 14,600 dollar standard deduction, taxable income is 70,400 dollars. The first 11,600 dollars is taxed at 10 percent, the next chunk at 12 percent, and the rest at 22 percent. The marginal rate is 22 percent, but the effective rate lands closer to 13 percent because the lower brackets pull the average down.
Things to keep in mind
This is an estimate of federal income tax only and ignores credits, state tax, and payroll withholding, so treat it as a planning figure rather than a filing number. For the official brackets and rules, see the IRS website. To see how a raise affects your monthly cushion, pair this with our income vs expense calculator.
Frequently asked questions
How is federal income tax calculated?
Your income is first reduced by deductions to reach taxable income. That figure is then split across tax brackets, and each slice is taxed at its own rate. Adding up the tax from every slice gives the total you owe. This calculator does that step by step using the 2024 brackets.
What is the difference between effective and marginal rate?
Your marginal rate is the rate applied to your last dollar of income, which is the top bracket you reach. Your effective rate is your total tax divided by your gross income, which is always lower because the early brackets are taxed at smaller rates.
Does the standard deduction lower my tax?
Yes. The standard deduction is subtracted from your income before any tax is figured, so it directly shrinks the amount that gets taxed. This tool applies the 2024 standard deduction for your filing status automatically, and you can add extra deductions on top.
Does this include state taxes or payroll taxes?
No. This estimate covers only federal income tax. It does not include state or local income tax, Social Security, or Medicare payroll withholding, so your actual paycheck deductions will be larger than the number shown here.
Related guides
View all →
Business FinanceHow Much Will $1,000 Invested Today Be Worth in 10 Years?
Invest $1,000 today and the answer to "what's it worth in 10 years?" ranges from about $1,040 in a basic savings account to roughly $2,594 at the stock market's long-run average. Here's the math behind every scenario — plus how inflation, fees and taxes change the real number.
MAJun 9, 2026Read More →
Business FinanceHow Much Do You Need to Retire Comfortably? (2026 Guide)
There's no single magic number for retirement — but there are proven formulas that get you close. Using the 4% rule, most people need roughly 25 times their annual spending invested. Here's how to find your personal target, factoring in Social Security, healthcare, inflation and lifestyle.
MAJun 9, 2026Read More →
Advertisement