US Income Tax Calculator

How US Federal Income Tax Works

The US uses a progressive tax system: income is taxed at increasing rates as it falls into higher brackets. Crucially, only the income within each bracket is taxed at that bracket's rate: not your entire income.

For example, if you earn $50,000 and file as single, the first $11,600 is taxed at 10%, the next portion at 12%, and so on. Your effective tax rate is your actual total tax divided by your gross income, which is always lower than your marginal rate.

The standard deduction reduces your taxable income before tax brackets are applied. For most taxpayers it is larger than itemized deductions, making it the better choice. You should only itemize if your deductible expenses (mortgage interest, state taxes, charitable donations) exceed the standard deduction.

What This Calculator Does Not Include

This tool calculates federal income tax only. Your actual tax burden will differ depending on:

• State income tax: ranges from 0% (Texas, Florida) to 13.3% (California top bracket)
• FICA taxes: Social Security (6.2%) and Medicare (1.45%) on wages
• Self-employment tax: 15.3% if self-employed (covers both employer and employee share)
• Additional Medicare tax: 0.9% on wages above $200,000 (single) / $250,000 (MFJ)
• Alternative Minimum Tax (AMT): may apply to high earners with large deductions