Income Tax Calculator
Estimate your federal income tax based on your income and filing status
Federal Income Tax
How Income Tax Works:
The U.S. federal income tax is a progressive tax system where different income levels are taxed at different rates. These levels are called tax brackets.
Common misconception: Moving into a higher tax bracket doesn't mean all your income is taxed at that rate. Only the income within each bracket is taxed at that bracket's rate.
Example: If you're in the 22% bracket, only the portion of your income that falls into that bracket is taxed at 22%. Lower portions are still taxed at lower rates.
2023 Federal Tax Brackets: Single
| Income Range | Tax Rate |
|---|---|
| $0.00 - $11,000.00 | 10% |
| $11,000.00 - $44,725.00 | 12% |
| $44,725.00 - $95,375.00 | 22% |
| $95,375.00 - $182,100.00 | 24% |
| $182,100.00 - $231,250.00 | 32% |
| $231,250.00 - $578,125.00 | 35% |
| $578,125.00 - No Limit | 37% |
Standard Deduction (2023):
- Single: $13,850.00
- Married Filing Jointly: $27,700.00
- Head of Household: $20,800.00
Note: This calculator provides estimates for educational purposes only and should not be used for tax filing. Tax laws change frequently, and calculations may not reflect recent changes.
Calculate Your Estimated Tax
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Pre-Tax Deductions (Optional)
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$
$
Include any tax credits like Child Tax Credit, Education Credits, etc.
Tax Calculation Results
Federal Income Tax:
$0.00
Take-Home Pay (Annual):
$0.00
Monthly: $0.00
Effective Tax Rate:
0.00%
Marginal Tax Rate:
0.00%
Tax Breakdown by Bracket
| Bracket | Taxable Amount | Rate | Tax |
|---|
Understanding Your Tax Calculation
Effective vs. Marginal Tax Rate
Effective Tax Rate is the average rate at which your income is taxed. It's calculated by dividing your total tax by your total income.
Marginal Tax Rate is the rate at which your last dollar of income is taxed. This is the tax bracket rate for your highest income dollar.
Standard vs. Itemized Deductions
Standard Deduction is a fixed dollar amount that reduces your taxable income, varying by filing status.
Itemized Deductions are eligible expenses that can be deducted from your taxable income, including mortgage interest, charitable donations, and some medical expenses. You would choose this if the total exceeds your standard deduction.
Tax Credits vs. Deductions
Tax Credits directly reduce the amount of tax you owe, dollar for dollar. They're more valuable than deductions of the same amount.
Tax Deductions reduce your taxable income, which then reduces your tax liability by your marginal tax rate.
This Calculator's Limitations
- Estimates federal income tax only (no state or local taxes)
- Uses simplified tax brackets for illustration
- Doesn't include all possible deductions and credits
- Doesn't account for self-employment tax or alternative minimum tax
- Not a replacement for professional tax advice