How the income tax calculator works
This calculator estimates the US federal income tax on your 2026 income, which is the return you file in early 2027. It follows the same steps as Form 1040, using the 2026 figures the IRS published in Revenue Procedure 2025-32.
- Total income. Your wages plus other taxable income, such as interest or profit from a side job.
- Adjusted gross income (AGI). Total income minus pre-tax deductions: traditional 401(k) or 403(b) contributions, HSA contributions and deductible IRA contributions.
- Taxable income. AGI minus the standard deduction (or your itemized deductions), and minus the new senior deduction if you are 65 or older.
- Tax from the brackets. Each slice of taxable income is taxed at its own rate, from 10% to 37%.
- Credits. The child tax credit and the credit for other dependents come off the tax. Part of the child credit can be paid to you even if your tax is zero.
Taxable income = AGI − standard (or itemized) deduction − senior deduction
Tax = Σ (income in each bracket × that bracket’s rate) − credits
Effective rate = tax ÷ total income
You see the tax for each bracket, your effective and marginal rates, a step-by-step table and, if you enter what was withheld from your pay, your likely refund or balance due.
2026 federal tax brackets
These are the 2026 rates and thresholds for taxable income, after deductions. Each rate applies only to the income inside its band.
| Rate | Single | Married filing jointly | Married filing separately | Head of household |
|---|---|---|---|---|
| 10% | $0 – $12,400 | $0 – $24,800 | $0 – $12,400 | $0 – $17,700 |
| 12% | $12,400 – $50,400 | $24,800 – $100,800 | $12,400 – $50,400 | $17,700 – $67,450 |
| 22% | $50,400 – $105,700 | $100,800 – $211,400 | $50,400 – $105,700 | $67,450 – $105,700 |
| 24% | $105,700 – $201,775 | $211,400 – $403,550 | $105,700 – $201,775 | $105,700 – $201,750 |
| 32% | $201,775 – $256,225 | $403,550 – $512,450 | $201,775 – $256,225 | $201,750 – $256,200 |
| 35% | $256,225 – $640,600 | $512,450 – $768,700 | $256,225 – $384,350 | $256,200 – $640,600 |
| 37% | Over $640,600 | Over $768,700 | Over $384,350 | Over $640,600 |
The One Big Beautiful Bill Act, signed in July 2025, made these seven rates permanent. Before it, they were due to rise in 2026.
2026 standard deduction and credits
| Item | 2026 amount |
|---|---|
| Standard deduction, single or married filing separately | $16,100 |
| Standard deduction, married filing jointly | $32,200 |
| Standard deduction, head of household | $24,150 |
| Extra standard deduction, age 65+ or blind (each) | $2,050 unmarried, $1,650 married |
| Enhanced deduction for seniors (2025–2028) | $6,000 per person aged 65+ |
| Child tax credit (child under 17) | $2,200 per child |
| Refundable part of the child tax credit | Up to $1,700 per child |
| Credit for other dependents | $500 each |
| Credit phase-out starts (modified AGI) | $200,000; $400,000 joint |
Two rules sit behind the credit numbers. First, both credits shrink by $50 for every $1,000 (or part of $1,000) of income above the phase-out start. Second, the refundable part, called the additional child tax credit, is limited to 15% of your earned income above $2,500.
The senior deduction is new. It is on top of the normal extra deduction for age, and you can take it whether you itemize or not. It shrinks by 6% of modified AGI above $75,000 ($150,000 for joint filers), and married couples must file jointly to claim it.
Worked example 1: single, $75,000 salary
Maya is single and earns $75,000. She puts $4,500 (6%) into her traditional 401(k). These are the calculator’s default numbers.
- AGI: $75,000 − $4,500 = $70,500
- Taxable income: $70,500 − $16,100 standard deduction = $54,400
- 10% on the first $12,400 = $1,240
- 12% on the next $38,000 ($12,400 to $50,400) = $4,560
- 22% on the last $4,000 ($50,400 to $54,400) = $880
- Federal income tax: $6,680
Maya is “in the 22% bracket”, but only $4,000 of her income is taxed at 22%. Her effective rate is $6,680 ÷ $75,000 = 8.9%. Her 401(k) contribution saved her 22% × $4,500 = $990 of tax this year, because it came off the top of her income.
Worked example 2: married couple, two children
Sam and Alex file jointly. Together they earn $150,000 and have two children aged 6 and 9.
- Taxable income: $150,000 − $32,200 = $117,800
- Tax: $11,600 on the first $100,800, plus 22% of $17,000 = $3,740, so $15,340
- Child tax credit: 2 × $2,200 = $4,400. Their income is far below $400,000, so there is no phase-out.
- Federal income tax: $15,340 − $4,400 = $10,940
Their effective rate is $10,940 ÷ $150,000 = 7.3%, and their marginal rate is 22%.
Worked example 3: a single parent earning $30,000
Jordan files as head of household, earns $30,000 and has two children under 17.
- Taxable income: $30,000 − $24,150 = $5,850, so the tax is 10% = $585
- The $4,400 child tax credit wipes out the $585 of tax.
- Of the $3,815 left, up to $1,700 per child is refundable: $3,400. That is also below 15% × ($30,000 − $2,500) = $4,125, so Jordan gets the full $3,400 paid as part of the refund.
Jordan may also qualify for the earned income credit, which this calculator does not include. The IRS EITC Assistant can check.
Worked example 4: a 66-year-old retiree
Pat is single, 66 and has $60,000 of taxable pension income. Enter it as other income and set “65 or older” to 1.
- Standard deduction: $16,100 + $2,050 for age = $18,150
- Senior deduction: $6,000 (income is below $75,000, so no phase-out)
- Taxable income: $60,000 − $18,150 − $6,000 = $35,850
- Tax: $1,240 + 12% of $23,450 = $4,054
Without the new senior deduction, Pat would pay $720 more.
Marginal vs effective tax rate
People often fear a raise will “push them into a higher bracket” and cost them money. It can’t. The US system is progressive: each rate applies only to the dollars inside its band.
- Your marginal rate is the rate on your next dollar. Use it to judge a raise, a bonus or a 401(k) contribution. A $1,000 contribution saves you $1,000 × your marginal rate.
- Your effective rate is your total tax divided by your total income. It shows your real share and is always lower than your marginal rate.
Credits and phase-outs can make your true marginal rate a little higher than your bracket. For example, if your income is just above $200,000 with children, each extra $1,000 also costs $50 of child credit.
Standard deduction or itemize?
You take whichever is bigger. Itemized deductions include mortgage interest, state and local taxes (SALT, capped at about $40,000 for most people since 2025, and lower at high incomes), gifts to charity and medical costs above 7.5% of AGI. Most households take the standard deduction, because it is large. Open More options, pick “Itemize” and enter your total to compare. The calculator warns you if your itemized total is smaller than the standard deduction.
Tips to lower your federal income tax
- Use pre-tax accounts. Traditional 401(k), 403(b), HSA and deductible IRA contributions cut your taxable income now. The 401(k) calculator shows what they grow to.
- Claim every dependent. Each child under 17 is worth up to $2,200; each other dependent is worth $500.
- Check your withholding mid-year. Enter what you have had withheld so far, scaled up to a full year. If you will owe, update your Form W-4 before December.
- Bunch deductions. If you are close to the standard deduction, giving two years of charity in one year can let you itemize every other year.
- Think about Roth too. Roth contributions do not cut tax today, but withdrawals in retirement are tax-free. The Roth IRA calculator compares the growth.
What this calculator does not cover
It is a clear estimate for most employees and retirees, not a full tax return. It leaves out:
- state and local income tax, and Social Security and Medicare (see the paycheck calculator);
- self-employment tax of 15.3% on business profit;
- the lower 0%, 15% and 20% rates on long-term capital gains and qualified dividends;
- the alternative minimum tax and the 3.8% net investment income tax;
- the earned income credit, education credits and the child and dependent care credit;
- the 2025–2028 deductions for tips, overtime pay and car-loan interest;
- the new 2026 limit on itemized deductions for people in the 37% bracket.
The child-credit and senior-deduction rules use the 2025 IRS worksheets (Schedule 8812 and Schedule 1-A) with the 2026 dollar amounts, because the 2026 forms are not final yet. For a full read of the brackets with more examples, see our guide to US federal tax brackets for 2026. To turn an hourly wage into a yearly salary before you start, use the salary calculator.
This calculator is for education and planning. It is not tax advice, and your return depends on your full situation.