— Tax, VAT & Sales
Income Tax Estimator
Estimate US federal income tax from progressive brackets. Enter income, filing status, deductions, pre-tax contributions, and credits to see total tax, take-home pay, effective and marginal rates, per-bracket tax, and optional state tax.
Total tax owed
$8,114
- After-tax income
- $66,886
- Effective tax rate
- 10.82%
- Marginal tax rate
- 22%
- Taxable income
- $60,000
- Federal tax
- $8,114
- Standard deduction
- $15,000
— Tax by bracket
| Bracket | Rate | Tax in bracket |
|---|---|---|
| $0 – $11,925 | 10% | $1,192.50 |
| $11,925 – $48,475 | 12% | $4,386 |
| $48,475 – $60,000 | 22% | $2,535.50 |
— Federal tax by bracket
Download— How it works
Taxable income = gross − pre-tax contributions − deductions. Federal tax is the sum across brackets of (income in that bracket × the bracket’s rate). Credits reduce the tax directly. Effective rate = total tax ÷ gross; marginal rate = the rate on your last dollar.
How progressive brackets actually work
The single most misunderstood thing about income tax is that moving into a higher bracket does not tax all your income at that rate — only the slice that falls inside the bracket. The system is progressive: the first dollars are taxed at 10%, the next band at 12%, and so on up. So your marginal rate (the rate on your last dollar) is higher than your effective rate (your total tax divided by your income), often by a lot. The per-bracket table here shows exactly how much tax lands in each band, which is the clearest way to see that a raise is never “taxed away” by crossing a threshold.
Before any of that, your taxable income is worked out: start with gross income, subtract pre-tax contributions like a traditional 401(k), then subtract the standard deduction (or your itemized total). Tax is calculated on what remains, and credits come off the tax itself.
Worked example — $75,000, single, 2025, standard deduction: Taxable = $75,000 − $15,000 = $60,000. Tax = 10% of the first $11,925 + 12% to $48,475 + 22% to $60,000 = $1,192.50 + $4,386 + $2,535.50 = $8,114. That is an 10.8% effective rate, even though the marginal rate is 22%.
Deductions, contributions and credits
Deductions and contributions lower the income that gets taxed; credits lower the tax itself, which makes a credit worth far more than a deduction of the same size. Most filers take the standard deduction — \$15,000 single or \$30,000 married filing jointly for 2025 — and only itemize when their deductible expenses (mortgage interest, state and local taxes, charity) exceed it. Pre-tax retirement contributions are a deduction you control: every dollar into a traditional 401(k) is a dollar not taxed this year. Switch on the advanced options to add these, plus dependents for a simplified Child Tax Credit. The figures here are an estimate — real returns involve phase-outs, the alternative minimum tax and many credits this tool does not model.
Federal, state and the year that applies
This estimator is federal-first. Forty-one states also tax income, in wildly different ways — some flat, some progressive, and nine (including Texas, Florida and Washington) with no state income tax at all. Because a full fifty-state engine would be its own project, the state layer here is a single flat rate you enter, applied to your taxable income, to give a rough combined figure; check your state’s actual schedule for precision. Finally, brackets and the standard deduction are adjusted for inflation each year, so pick the right tax year — the 2025 thresholds are noticeably higher than 2024’s, which by itself slightly lowers the tax on the same income.
— Reader questions
How is federal income tax calculated?
It is progressive: your taxable income (gross minus pre-tax contributions and deductions) is split across brackets, and each slice is taxed at that bracket’s rate. The total is the sum. Credits then reduce the tax directly. This tool shows the tax in each bracket and the totals.
What is the difference between effective and marginal tax rate?
Your marginal rate is the rate on your next dollar of income — the highest bracket you reach. Your effective rate is your total tax divided by your total income, which is lower because the earlier brackets are taxed at lower rates. On $60,000 taxable, the marginal rate may be 22% while the effective rate is under 11%.
Does moving into a higher tax bracket reduce my take-home pay?
No. Only the income above the threshold is taxed at the higher rate; everything below keeps its lower rates. A raise always increases your take-home pay — you never lose money by crossing a bracket. The per-bracket table makes this clear.
Should I take the standard or itemized deduction?
Take whichever is larger. Most people use the standard deduction ($15,000 single / $30,000 married jointly for 2025). Itemize only if your deductible expenses — mortgage interest, state and local taxes (capped), charitable gifts — add up to more than that.
How do pre-tax 401(k) contributions affect my tax?
They reduce your taxable income dollar-for-dollar this year, so they cut your tax at your marginal rate. Contributing $10,000 at a 22% marginal rate saves about $2,200 in federal tax now; the money is taxed later when withdrawn in retirement.
Does this include state income tax?
Only as an optional flat-rate estimate you enter, applied to taxable income. State systems vary too much for a single model — some are flat, some progressive, and nine states have no income tax. Use the state field for a rough combined figure and check your state’s schedule for accuracy.