How the income tax calculator works
The U.S. uses a progressive tax system. Your income is split into layers, and each layer is taxed at its own rate, from 10% up to 37%. The calculator subtracts pre-tax contributions to find adjusted gross income, subtracts the standard deduction (or your itemized deductions) to find taxable income, and then applies the 2026 brackets for your filing status. Credits are subtracted dollar-for-dollar from the result.
2026 figures used
These come from IRS Revenue Procedure 2025-32. Standard deduction: $16,100 single or married filing separately, $32,200 married filing jointly, $24,150 head of household. For single filers the 10% bracket ends at $12,400, 12% at $50,400, 22% at $105,700, 24% at $201,775, 32% at $256,225 and 35% at $640,600; income above that is taxed at 37%.
Example
A single filer with $75,000 of wages and no adjustments has taxable income of $58,900 after the standard deduction. The first $12,400 is taxed at 10%, the next $38,000 at 12% and the last $8,500 at 22%, for a total of $7,670. The marginal rate is 22%, but the effective rate on total income is only about 10.2%.
Limits of this estimate
This covers ordinary federal income tax only. It does not handle capital gains rates, self-employment tax, the alternative minimum tax, phase-outs of credits, state taxes or newer deductions such as those for tips, overtime and seniors. For a filing-ready answer, use tax software or a tax professional.
Frequently asked questions
Will a raise push all my income into a higher bracket?
No. Only the dollars above a bracket threshold are taxed at the higher rate, so a raise always increases your income after tax.
What is the difference between marginal and effective rate?
Your marginal rate applies to your last dollar of income. Your effective rate is total tax divided by total income, and it is lower.
Should I itemize?
Only if your deductions — such as mortgage interest, state and local taxes and charitable gifts — add up to more than the standard deduction.
Is this for the 2026 tax year?
Yes. It uses 2026 brackets, which apply to returns filed in early 2027.
Results are estimates for educational purposes only and are not financial, tax, legal or medical advice. See our disclaimer. Last reviewed 2026-10-22.