Tax Calculator
Estimate federal income tax, state tax, FICA (Social Security & Medicare), deductions, and take-home pay with exact 2026 progressive brackets.
Annual W-2 Wages / Salary
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Total annual gross wages earned from employment before taxes and deductions.
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Pre-Tax 401(k) / Retirement
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Traditional 401(k), 403(b), or IRA contributions that reduce federal and state taxable income.
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State Income Tax Rate
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Estimated state tax rate. Enter 0% for TX, FL, WA, NV, TN, etc. National average is ~4.5%.
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Additional Income (1099 / Other)
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Freelance, business profits, dividends, or interest income.
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Deduction Method
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Standard deduction ($14,600 Single / $29,200 MFJ) is usually higher than itemizing.
Tax Credits (Child / Other)
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Direct dollar-for-dollar reduction of tax liability (e.g., $2,000 Child Tax Credit).
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Local / Municipal Tax Rate
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County or municipal tax rate (e.g. NYC, Philadelphia). Default is 0%.
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| Tax Component | Annual Amount | Monthly | % of Gross |
|---|---|---|---|
| Gross Total Income | $75,000.00 | $6,250.00 | 100.0% |
| Pre-Tax 401(k) / Adjustments | −$5,000.00 | −$416.67 | 6.7% |
| Standard Deduction (Exempt Base) | $14,600.00 | — | 19.5% |
| Federal Taxable Income | $55,400.00 | $4,616.67 | 73.9% |
| Federal Income Tax (FIT) | −$7,241.00 | −$603.42 | 9.7% |
| Social Security Tax (FICA 6.2%) | −$4,650.00 | −$387.50 | 6.2% |
| Medicare Tax (FICA 1.45%) | −$1,087.50 | −$90.63 | 1.5% |
| State & Local Income Tax | −$2,493.00 | −$207.75 | 3.3% |
| Total Tax Liability | −$15,471.50 | −$1,289.29 | 20.6% |
| Net After-Tax Income (Take-Home) | $54,528.50 | $4,544.04 | 72.7% |
Gross Income Distribution & Tax Split
Live Mathematical Derivation:
Gross Income = $75,000.00
Adjusted Gross Income (AGI) = $75,000.00 − $5,000.00 (401k) = $70,000.00
Taxable Income = $70,000.00 − $14,600.00 (Standard Deduction) = $55,400.00
Federal Tax (FIT) = 10% on $11.6k + 12% on $35.55k + 22% on $8.25k = $7,241.00
FICA & State Taxes = $4,650.00 (SS) + $1,087.50 (Med) + $2,493.00 (State) = $8,230.50
Total Taxes = $7,241.00 + $8,230.50 = $15,471.50 (Effective Rate: 20.63%)
Adjusted Gross Income (AGI) = $75,000.00 − $5,000.00 (401k) = $70,000.00
Taxable Income = $70,000.00 − $14,600.00 (Standard Deduction) = $55,400.00
Federal Tax (FIT) = 10% on $11.6k + 12% on $35.55k + 22% on $8.25k = $7,241.00
FICA & State Taxes = $4,650.00 (SS) + $1,087.50 (Med) + $2,493.00 (State) = $8,230.50
Total Taxes = $7,241.00 + $8,230.50 = $15,471.50 (Effective Rate: 20.63%)
* Results are estimates for educational and planning purposes only and do not constitute formal financial, tax, or legal advice.
Understanding the US Income Tax System
The United States federal income tax operates under a progressive marginal tax bracket system. As your taxable income increases, dollars earned in higher brackets are taxed at incrementally higher rates, rather than your entire income being taxed at a single rate. Understanding your taxable income, deductions, and withholdings helps prevent unexpected tax bills and maximizes your take-home pay.
Marginal vs. Effective Tax Rate
Marginal Tax Rate: The highest bracket applied to your last dollar of income (e.g., 22%).
Effective Tax Rate: The blended percentage of total income actually paid in taxes (e.g., 20.63%), reflecting standard deductions and lower preliminary brackets.
Effective Tax Rate: The blended percentage of total income actually paid in taxes (e.g., 20.63%), reflecting standard deductions and lower preliminary brackets.
Standard vs. Itemized Deductions
The IRS allows taxpayers to subtract either a flat Standard Deduction ($14,600 for Single, $29,200 for MFJ) or the sum of qualifying Itemized Deductions (mortgage interest, SALT up to $10k, charitable donations). Always choose the greater amount.
Current Federal Tax Brackets Reference
| Tax Rate | Single Filers | Married Filing Jointly | Head of Household |
|---|---|---|---|
| 10% | $0 to $11,600 | $0 to $23,200 | $0 to $16,550 |
| 12% | $11,600 to $47,150 | $23,200 to $94,300 | $16,550 to $63,100 |
| 22% | $47,150 to $100,525 | $94,300 to $201,050 | $63,100 to $100,500 |
| 24% | $100,525 to $191,950 | $201,050 to $383,900 | $100,500 to $191,950 |
| 32% | $191,950 to $243,725 | $383,900 to $487,450 | $191,950 to $243,700 |
| 35% | $243,725 to $609,350 | $487,450 to $731,200 | $243,700 to $609,350 |
| 37% | Over $609,350 | Over $731,200 | Over $609,350 |
Step-by-Step Illustrative Example
Consider a Single filer earning $75,000.00 in W-2 wages, contributing $5,000.00 to a Traditional 401(k), with an estimated 4.5% state income tax:
1. Gross Income: $75,000.00.
2. Adjusted Gross Income (AGI): $75,000 − $5,000 (401k) = $70,000.00.
3. Taxable Income: $70,000 − $14,600 (Standard Deduction) = $55,400.00.
4. Federal Income Tax: 10% on first $11,600 ($1,160) + 12% on next $35,550 ($4,266) + 22% on remaining $8,250 ($1,815) = $7,241.00.
5. FICA Payroll Taxes: Social Security (6.2%) = $4,650.00; Medicare (1.45%) = $1,087.50. Total FICA = $5,737.50.
6. State Income Tax: 4.5% of $55,400 = $2,493.00.
7. Total Taxes: $7,241 + $5,737.50 + $2,493 = $15,471.50 (20.63% effective rate).
8. Net Take-Home Pay: $75,000 − $20,471.50 = $54,528.50/year ($4,544.04/month).
2. Adjusted Gross Income (AGI): $75,000 − $5,000 (401k) = $70,000.00.
3. Taxable Income: $70,000 − $14,600 (Standard Deduction) = $55,400.00.
4. Federal Income Tax: 10% on first $11,600 ($1,160) + 12% on next $35,550 ($4,266) + 22% on remaining $8,250 ($1,815) = $7,241.00.
5. FICA Payroll Taxes: Social Security (6.2%) = $4,650.00; Medicare (1.45%) = $1,087.50. Total FICA = $5,737.50.
6. State Income Tax: 4.5% of $55,400 = $2,493.00.
7. Total Taxes: $7,241 + $5,737.50 + $2,493 = $15,471.50 (20.63% effective rate).
8. Net Take-Home Pay: $75,000 − $20,471.50 = $54,528.50/year ($4,544.04/month).
How to Use This Tax Calculator
- Select your IRS filing status (Single, Married Filing Jointly, or Head of Household) at the top.
- Enter your annual W-2 wages and any pre-tax 401(k) retirement contributions.
- Adjust your state income tax rate (0% to 12%) based on your residence state.
- Expand the Deductions & Credits section if you have 1099 income, itemized deductions, or child tax credits.
- View your complete tax breakdown, effective rate, and interactive allocation donut chart instantly.
Frequently Asked Questions
What is the difference between marginal tax rate and effective tax rate?
Your marginal tax rate is the highest tax bracket applied to your last dollar of taxable income (e.g., 22%). Your effective tax rate is the actual percentage of your total income paid in taxes (Total Taxes ÷ Total Income, e.g., 20.63%), which is always significantly lower due to progressive brackets and standard deductions.
Should I take the standard deduction or itemize deductions?
You should take whichever deduction reduces your taxable income the most. Most US taxpayers use the standard deduction ($14,600 for Single, $29,200 for Married Filing Jointly). If your deductible expenses (mortgage interest, state and local taxes up to $10,000, and charitable gifts) exceed the standard deduction, you should itemize.
How does 401(k) pre-tax contribution reduce my taxes?
Traditional 401(k) contributions are made with pre-tax dollars, which directly lowers your Adjusted Gross Income (AGI). For example, contributing $5,000 when in the 22% federal marginal bracket saves you $1,100 in federal income taxes plus state income tax savings.
What states do not charge state income tax?
As of 2026, nine US states have no individual earned income tax: Alaska, Florida, Nevada, New Hampshire (which taxes dividend and interest income only), South Dakota, Tennessee, Texas, Washington, and Wyoming. Set your state tax slider to 0% if filing in these states.