Income Tax Estimator
Plan for tax season. This tool uses the official IRS tax brackets and standard deduction figures to estimate your federal liability and net take-home pay.
How do tax brackets work in the US?
The US federal income tax is progressive, meaning you pay higher rates on higher portions of your income. It is NOT a flat rate on your entire income. For example, if you are in the 22% bracket, you only pay 22% on the income within that specific range, while lower portions are taxed at 10% and 12%.
What is the standard deduction?
The standard deduction is a specific dollar amount that reduces the amount of income on which you're taxed. Most taxpayers choose the standard deduction rather than itemizing their deductions. The amount changes annually to account for inflation.
What is an effective tax rate?
Your effective tax rate is the actual percentage of your total income that goes to taxes. It is calculated by dividing your total tax bill by your total taxable income. It is almost always lower than your marginal tax bracket.
How does filing status affect my taxes?
Your filing status (Single, Married Filing Jointly, Head of Household) determines your tax bracket thresholds and your standard deduction amount. Generally, "Married Filing Jointly" offers the most favorable rates and the largest deduction.