Federal Tax Calculator

The federal income tax is the largest single tax most Americans pay. It funds defense, Social Security and Medicare benefits, infrastructure, and federal programs. Because the U.S. uses a progressive system, your tax is computed bracket by bracket — not by applying a single rate to your entire income.

How federal brackets work

In 2024, single filers move through seven brackets: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Only the portion of income within each bracket is taxed at that rate. If you earn $50,000, the first $11,600 is taxed at 10%, the next slice at 12%, and the dollars above $47,150 at 22%. Your "marginal rate" describes that top bracket — but your "effective rate" (total tax divided by total income) is always lower.

Standard vs itemized deductions

Roughly 90% of filers take the standard deduction. It's simple and large — $14,600 for single, $29,200 for married joint. Itemizing pays off when state and local taxes (capped at $10,000), mortgage interest, and charitable gifts add up to more than the standard amount.

Common federal credits

The Child Tax Credit gives up to $2,000 per qualifying child under 17. The Earned Income Tax Credit helps low and moderate-income workers, with refundable amounts based on income and number of children. The Saver's Credit and education credits like the American Opportunity Credit further reduce tax bills for eligible filers.

When to adjust withholding

If you typically get a large refund, you've been overwithholding all year — the IRS is returning your money interest-free. A small refund or small balance due means your withholding is well-tuned. Submit a new W-4 to your employer to adjust.