Annual gross income is the starting amount. The calculator subtracts either the standard deduction or the itemized deductions you enter. Only the remaining taxable income is distributed across the progressive federal tax brackets.
How to use the calculator
Enter your expected annual gross income in U.S. dollars.
Select the filing status used for your federal return.
Choose the standard deduction or enter your total itemized deductions.
Compare estimated tax, taxable income, and the effective and marginal rates.
Example for a single filer
With $85,000 of gross income and the $16,100 standard deduction, taxable income is $68,900. The first portions are taxed at 10% and 12%, and only the amount above those brackets is taxed at 22%. The effective rate is therefore lower than the marginal rate.
What the estimate does not include
The calculator excludes tax credits, FICA, state tax, additional deductions, AMT, investment income, and special rules for self-employment. It is a simplified 2026 federal estimate, not a complete tax return.
Frequently Asked Questions
How does the US federal income tax system work?
The US uses a progressive tax system. You don't pay the highest rate on all income — only on the portion above each bracket threshold. For 2026, brackets range from 10% to 37%.
What is the standard deduction for 2026?
The calculator shows the standard deduction for each supported filing status from its selected IRS baseline. Most taxpayers claim the standard deduction rather than itemizing.
Which filing status should I choose?
Choose the status used on your U.S. federal return: single, married filing jointly, or head of household. The calculator does not determine whether you legally qualify for a filing status.
What is the difference between marginal and effective tax rate?
Your marginal rate is the rate on your last dollar of income (your tax bracket). Your effective rate is total tax divided by gross income — always lower because lower portions are taxed at lower rates.
What is the difference between a tax deduction and a tax credit?
A deduction reduces taxable income, saving you money at your marginal rate. A credit reduces your tax bill dollar for dollar. A $1,000 credit saves $1,000; a $1,000 deduction at 22% saves $220.
What taxes are withheld from my paycheck?
This calculator estimates federal income tax only. Social Security, Medicare, and state income tax need to be calculated separately.
Which tax year do the values cover?
The brackets and standard deductions apply to U.S. tax year 2026 and come from the IRS adjustments published for 2026.
