Income Tax Calculator

Income tax in the United States is layered: federal tax goes to the IRS, and most states also collect their own income tax. Together they determine how much of your paycheck you actually keep. The federal system is progressive — your first dollars are taxed at low rates, and only the dollars above each threshold are taxed at higher rates.

Federal brackets for 2026

For single filers in 2026, the brackets run from 10% on income up to $12,400 to 37% on income above $640,600. Married couples filing jointly enjoy roughly double the thresholds. Heads of household sit in between. Because the system is marginal, jumping from one bracket to the next never reduces your take-home pay — only the additional income is taxed higher.

The standard deduction

Most filers take the standard deduction because it exceeds their itemized total. For 2026 it's $16,100 (single), $32,200 (married joint), and $24,150 (head of household). Taxpayers 65 or older get an extra amount. Itemizing makes sense when mortgage interest, state and local taxes (capped at $10,000), and charitable gifts exceed the standard.

Credits vs deductions

Deductions reduce taxable income; credits reduce tax owed. A $1,000 credit is worth $1,000, while a $1,000 deduction saves only your marginal rate × $1,000. The biggest credits include the Child Tax Credit, Earned Income Tax Credit, and education credits.

State taxes vary widely

Nine states — Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming — have no broad income tax. Others, like California and New York, use steeply graduated brackets that reach 9–13%. Our calculator uses each state's average effective rate; your actual liability may differ based on local deductions and credits.

Effective vs marginal rate

Your marginal rate is the bracket your next dollar lands in. Your effective rate is the average rate across all your income. Both numbers matter: marginal for planning new income or deductions, effective for understanding total burden.