Income Tax Calculator

Enter your income and filing status to see federal tax owed, your marginal bracket and your effective rate.

How income tax is worked out

The US federal income tax is progressive: each slice of income is taxed at its own rate, so moving into a higher bracket only affects the income above that threshold. This calculator applies each bracket in turn and shows the total.

Your marginal rate is the rate on your next dollar earned; your effective rate is total tax divided by total income. The two are usually far apart, and the effective rate is the more useful number.

How to fill it in

  1. Enter your gross annual income.
  2. Choose your filing status and tax year.
  3. Switch to itemized deductions if they exceed the standard deduction.

Formula reference

taxable income = gross − pre-tax − deduction tax = Σ (income in each bracket × that bracket rate) effective rate = total tax ÷ gross income

Try it with these numbers

The calculator opens with a gross annual income of 75,000. On those figures the federal tax owed is $8,114. Underneath, Taxable income comes out at $60,000 and Deduction used at $15,000. Change any field and every figure updates as you type.

Common questions

What is the difference between marginal and effective tax rate?
The marginal rate applies only to your next dollar of income. The effective rate is your total tax divided by total income, and is always lower.
Should I itemize or take the standard deduction?
Itemize only if your deductible expenses exceed the standard deduction for your filing status. Most filers do better with the standard deduction.
Does this include state tax?
No — this covers federal income tax only. Use the paycheck calculator for a combined estimate.