Income Tax Calculator
Estimate your 2026 federal and state income tax liability, effective tax rate, and after-tax take-home income. Covers all filing statuses, standard and itemized deductions, FICA taxes, and all 50 states.
Income & Filing Details
$85,000/year
Deductions & Pre-Tax
$6,000 pre-tax
Your Tax Summary
Estimated total taxes (federal + FICA + state)
Take-Home Income
$63,504
Effective Rate
18.2%
Marginal Rate
22.0%
Taxable Income
$64,000
Where Your Income Goes
Tax Breakdown
Federal Tax Bracket Breakdown
An income tax calculator estimates how much you owe in federal and state income taxes based on your gross income, filing status, deductions, and pre-tax contributions. It applies the IRS's progressive tax bracket system alongside FICA (Social Security and Medicare) taxes to show your total tax liability and effective tax rate.
Formula:
Federal Tax = Σ (Income in Each Bracket × Bracket Rate)The US uses a progressive tax system — only income within each bracket is taxed at that bracket's rate. Your marginal rate only applies to the last dollars earned, while your effective rate averages across all brackets.
- 1
Enter your annual gross income (W-2 wages, self-employment, or combined income)
- 2
Select your filing status (single, married jointly, married separately, or head of household)
- 3
Choose your state for an estimated state income tax
- 4
Select standard or itemized deductions — the calculator shows which is larger
- 5
Enter 401(k) / IRA and HSA contributions to reduce your taxable income
- 6
Review your effective rate, marginal rate, bracket breakdown, and after-tax income
- Understanding your effective vs. marginal rate prevents tax bracket anxiety — jumping a bracket doesn't mean all income is taxed at the higher rate
- Seeing your real after-tax take-home income helps with accurate budgeting and savings planning
- Modeling pre-tax contributions shows the exact dollar tax savings from 401(k), IRA, and HSA contributions
- Comparing standard vs. itemized deductions ensures you're not overpaying by defaulting to the wrong option
- •Maximize 401(k) contributions ($23,500 limit in 2026) — each dollar reduces taxable income at your marginal rate
- •Contribute to an HSA if eligible (2026 limit: $4,300 single / $8,550 family) — triple tax advantage
- •If your effective federal rate is below 22%, strongly consider Roth IRA contributions over Traditional
- •Harvest investment losses before year-end to offset capital gains and up to $3,000 of ordinary income
- •If self-employed, deduct half of self-employment tax from gross income before calculating federal tax
Paycheck Calculator
Calculate net pay after all deductions per paycheck
Try Calculator →Tax Withholding Calculator
Optimize your W-4 to avoid under- or over-withholding
Try Calculator →401(k) Calculator
See how 401(k) contributions reduce your tax bill and grow over time
Try Calculator →Roth IRA Calculator
Compare Traditional vs. Roth IRA tax impact
Try Calculator →Have questions about using this calculator? Check out our financial guides or contact us for help.
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Frequently Asked Questions
What is the difference between effective and marginal tax rate?
Your marginal tax rate is the rate applied to your last dollar of income — the highest bracket you fall into. Your effective tax rate is the average rate paid across all income, always lower than your marginal rate because the US uses a progressive system where lower income is taxed at lower rates.
What is the standard deduction for 2026?
For 2026, the standard deduction is $15,000 for single filers, $30,000 for married filing jointly, $15,000 for married filing separately, and $22,500 for head of household. These amounts reduce your gross income before calculating your tax liability.
What is FICA and do I have to pay it?
FICA (Federal Insurance Contributions Act) includes Social Security tax (6.2% on wages up to $176,100) and Medicare tax (1.45% on all wages, plus an additional 0.9% on wages over $200,000 for single filers). Most employees must pay FICA; self-employed individuals pay the full 15.3% self-employment tax.
Should I take the standard deduction or itemize?
You should itemize only if your deductible expenses (mortgage interest, state taxes, charitable contributions, etc.) exceed the standard deduction for your filing status. With the 2026 standard deduction at $15,000 for single filers and $30,000 for married joint filers, most Americans benefit more from the standard deduction.
How do I reduce my tax bill legally?
Key strategies include maximizing pre-tax retirement contributions (401k, IRA), contributing to an HSA, harvesting investment losses, claiming all eligible deductions and credits, and considering timing of income and deductions across tax years.