Get a simplified estimate of your 2026 US federal income tax based on your taxable income and filing status. This tool covers US federal rules only — it does not include state or local income tax. Intended for quick planning, not tax filing.
US federal tax is progressive: each portion of income is taxed at the rate for its bracket, not your whole income at one rate.
Most income tax systems, including the U.S. federal system, use a marginal (progressive) bracket structure. This means your income is divided into slices, and each slice is taxed at its own rate — not your entire income at one single rate. Only the portion of income that falls within a given bracket is taxed at that bracket's rate.
A common misunderstanding is that moving into a higher bracket taxes all of your income at the higher rate. In reality, only the income above each threshold is taxed at the higher rate — the lower portions remain taxed at their original, lower rates.
| Bracket | Rate | Tax on that slice |
|---|---|---|
| $0 – $11,000 | 10% | $1,100 |
| $11,000 – $44,725 | 12% | $4,047 |
| $44,725 – $60,000 | 22% | $3,361 |
| Total | Effective rate ≈ 14.2% | $8,508 |
Tax owed per bracket — single filer, $60,000 taxable income (illustrative)
Example 1 — Higher income, single filer: $120,000 taxable income spans the 10%, 12%, 22%, and 24% brackets (illustrative), producing roughly $22,000 in federal tax, an effective rate of about 18.3% — well below the top 24% marginal rate.
Example 2 — Married filing jointly: The same $120,000 income for a married couple filing jointly falls into wider brackets, producing roughly $13,700 in tax — noticeably less than the single-filer example due to the broader bracket thresholds.
Example 3 — Effect of deductions: Reducing taxable income from $70,000 to $58,000 through a $12,000 deduction (standard or itemized) removes income specifically from the top bracket it was sitting in, saving tax equal to that bracket's marginal rate times $12,000 — not the effective rate.
| Term | Meaning |
|---|---|
| Marginal rate | Rate on your last (highest) dollar of income |
| Effective rate | Total tax ÷ total income (blended average) |
| Statutory rate | The published bracket rate before any credits |
Why did my paycheck withholding not match my final tax bill? Withholding is an estimate based on standardized tables; actual tax owed depends on your full-year income, deductions, and credits.
Do tax credits work the same as deductions? No — deductions reduce taxable income, while credits reduce the tax bill directly, dollar for dollar, making credits generally more valuable.
Does this calculator account for state tax? This estimate typically covers federal tax; state and local tax rates vary widely and are calculated separately.
Why is my effective tax rate always lower than my top bracket? Because only the income within each bracket is taxed at that bracket's rate — lower brackets are still taxed at their lower rates, pulling the blended (effective) rate down.
What's the difference between standard and itemized deductions? The standard deduction is a fixed amount available to all filers; itemizing lists specific deductible expenses individually and is worth choosing only when the itemized total exceeds the standard deduction.
Are capital gains taxed the same as regular income? No — long-term capital gains (on assets held over a year) are often taxed under a separate, generally lower rate schedule than ordinary wage income.
Does this estimate include payroll taxes like Social Security and Medicare? No — this is a federal income tax estimate only; payroll (FICA) taxes are calculated separately and apply on top of income tax.
For a single filer with $75,000 in taxable income, only the portion of income within each bracket is taxed at that bracket's rate — resulting in an effective tax rate that's meaningfully lower than the top marginal rate that applies to their highest dollar earned.
Taxable income: Gross income minus allowable deductions — the amount actually subject to tax.
Marginal tax rate: The tax rate applied to your last (highest) dollar of income.
Effective tax rate: Your total tax divided by your total income — your true average rate.
Standard deduction: A fixed amount that reduces taxable income without needing to itemize expenses.