Heads up: Updated to the 2026 IRS bracket schedule
(Rev. Proc. 2025-32, published October 2025). For actual tax filing,
always cross-check the IRS publication for your filing year — state
and local income tax, FICA, credits, and itemized deductions are not
modeled here.
Taxable Income: Your gross income minus the standard deduction. This is the amount that actually gets taxed through the bracket schedule — not your full paycheck.
Federal Tax: The total U.S. federal income tax owed on your taxable income, computed progressively across each bracket. This is only the federal portion — state, local, Social Security, and Medicare are separate.
Effective Rate: Your total federal tax divided by gross income, expressed as a percentage. This is always lower than your marginal bracket because only the income in each bracket is taxed at that bracket's rate.
Marginal Bracket: The tax rate applied to your last dollar of income. Earning one more dollar would be taxed at this rate, but it does not apply retroactively to all your income.
After-Tax Income: Gross income minus federal tax. This is not take-home pay — payroll taxes, state taxes, and benefit deductions further reduce what lands in your bank account.
How This Calculator Works
You enter your filing status, gross annual income, and the standard deduction (pre-filled from 2026 IRS figures). The tool subtracts the deduction from gross income to get taxable income, then applies each bracket rate progressively — 10% on the first slice, 12% on the next, and so on up through 37%. It returns the federal tax, effective rate, marginal bracket, and after-tax income. State taxes, FICA, credits, and itemized deductions are not included.
Quick Questions
Why is my effective rate so much lower than my bracket?
Because the U.S. uses progressive taxation. If you're in the 22% bracket, only the income within that bracket is taxed at 22% — your first dollars are still taxed at 10% and 12%. The effective rate blends all brackets together into one average.
Does this include Social Security and Medicare taxes?
No. This calculator covers only federal income tax. Social Security (6.2% on wages up to $176,100 in 2025) and Medicare (1.45% on all wages, plus 0.9% above $200,000) are separate payroll taxes withheld from your paycheck.
Should I use the standard deduction or itemize?
Most taxpayers benefit from the standard deduction — roughly 90% of filers use it. Itemizing makes sense if your qualifying deductions (mortgage interest, state/local taxes up to $10,000, charitable contributions) exceed the standard amount for your filing status.
What about state income tax?
State income tax varies widely — from 0% in states like Texas and Florida to over 13% in California. This calculator shows federal only. Add your state's rate on top to get a fuller picture of your total income tax burden.
Are these the latest tax brackets?
This calculator uses 2026 IRS brackets and standard deductions. The IRS adjusts these annually for inflation. Check IRS.gov for the most current figures if you're filing for a different tax year.
Estimate only. Results reflect your inputs and standard formulas — they are not financial, tax, legal, health, or investment advice. Verify important decisions with a qualified professional.