The formula
How it works
Estimate your US federal income tax from your annual income and filing status. The calculator applies the 2024 tax brackets and standard deduction to show your tax, your take-home pay and your effective and marginal rates.
FAQ
What is the difference between marginal and effective rate?
Your marginal rate is the rate on your next dollar of income — the top bracket you reach. Your effective rate is the total tax divided by your income, which is lower because the early brackets are taxed at lower rates. People often confuse the two; the calculator shows both.
Does this include state tax?
No — it estimates federal income tax only, using the 2024 brackets and standard deduction. State income taxes vary widely and some states have none. It also does not include payroll taxes or credits, so treat it as a close estimate of the federal figure rather than a full return.
Does moving into a higher bracket mean all my income is taxed at that rate?
No — that’s a common misconception. Only the portion of income within a given bracket is taxed at that bracket’s rate; income in lower brackets keeps being taxed at those lower rates, which is why the effective rate is always below the marginal rate.
What is the standard deduction and could itemizing save more?
The standard deduction is a flat amount subtracted from income before tax, and this calculator always uses it. Some filers with large deductible expenses — like mortgage interest or charitable gifts — can save more by itemizing instead, but that requires tracking actual expenses rather than taking the flat amount.
Does this calculator account for tax credits?
No, it only models brackets and the standard deduction. Credits like the Child Tax Credit reduce your tax bill dollar-for-dollar and aren’t included here, so your actual tax owed could be lower than the estimate if you qualify for any.
Why might my refund differ from what this calculator shows?
Your refund depends on how much was withheld from your paychecks compared with your actual tax liability. This calculator estimates the liability itself, not withholding, so a large refund or a balance due usually reflects a mismatch between the two rather than an error here.
Does this apply to self-employment income?
It estimates federal income tax only. Self-employed people also owe self-employment tax, which covers Social Security and Medicare and is calculated separately from the income tax shown here.
About the income tax calculator
This calculator estimates US federal income tax using the progressive bracket system. It subtracts the standard deduction from your income to find taxable income, then applies each bracket’s rate to the portion of income that falls within it. The result is your total tax, your take-home amount, and both your effective rate and the marginal rate on your last dollar — the numbers that actually describe your tax situation.
How to use it
Enter your annual income and choose your filing status — single or married filing jointly. The calculator shows the tax owed, your income after tax, and your effective and marginal rates. For example, a single filer earning $75,000 takes the $14,600 standard deduction, leaving $60,400 taxable, and owes roughly $8,300 — an effective rate near 11% despite a 22% marginal bracket.
The formula
Tax is charged in slices: each bracket’s rate applies only to the income within that bracket, . Taxable income is your income minus the standard deduction. The effective rate is total tax divided by gross income, while the marginal rate is the rate of the highest bracket your income reaches.
Where it is used
People use it to estimate what they will owe or get back before filing, to check paycheck withholding, and to see the tax effect of a raise or bonus. Understanding the marginal rate helps with decisions like contributing to a retirement account, which lowers taxable income. Because it lays the brackets out clearly, it is also a good way to learn how a progressive tax system actually works.