The Income Tax Calculator estimates the refund or potential owed amount on a federal tax return. It is mainly intended for residents of the U.S. and is based on the tax brackets of 2025 and 2026.
Modify the values and click the calculate button to use
Age 0-16
Age 17 or older
W-2 box 1
W-2 box 2
W-2 box 17
W-2 box 19
SSA-1099, RRB-1099
1099-INT
1099-DIV
e.g. rentals, royalties
unemployment, retirement pay
Max $10,000
Max $2,500/Person
Max $3,000/Person, $6,000 total
This income tax calculator covers 2026 federal income tax using the official brackets published by the IRS, 2026 standard deductions ($16,100 single / $32,200 MFJ / $24,150 head of household), Social Security and Medicare taxes, net investment income tax (3.8% above thresholds), and optional state income tax. You can enter W-2 wages, self-employment income, investment income (qualified dividends, capital gains, interest), retirement distributions, and above-the-line deductions. The result includes total tax, effective rate, marginal rate, and an itemized tax-by-source breakdown.
1. Select your filing status: Single, Married Filing Jointly, Married Filing Separately, or Head of Household.
2. Enter your income sources: wages, self-employment income, interest, dividends, capital gains, rental income, and retirement distributions.
3. Enter above-the-line deductions: student loan interest, retirement contributions (IRA, SEP), alimony (pre-2019), and self-employment tax deduction.
4. Choose standard deduction or itemize — the calculator defaults to whichever saves you more.
5. Enter any tax credits: Child Tax Credit, Earned Income Credit, Child/Dependent Care Credit, education credits.
6. Click Calculate to see your estimated federal tax liability, effective rate, marginal bracket, and refund/owe estimate.
Federal income tax uses a progressive bracket system. For 2026 (single filer), brackets are (IRS, Fidelity):
Tax = Sum of (each bracket layer × its marginal rate)
Specifically: 10% on the first $12,400; 12% on $12,401–$50,400; 22% on $50,401–$105,700; 24% on $105,701–$201,775; 32% on $201,776–$256,225; 35% on $256,226–$640,600; 37% above $640,600. Taxable income = Gross income – Adjustments – Deduction (standard or itemized).
Your marginal rate is the bracket your last dollar falls into — it determines the tax savings from any new deduction. Your effective rate is total tax divided by total income — the percentage you actually pay overall. These two numbers are almost always different, and confusing them is one of the most common tax misconceptions.
Let's walk through a complete bracket calculation for a single taxpayer in 2026.
Gross income: $95,000 (wages only)
Above-the-line deductions: $6,000 traditional IRA contribution
Adjusted Gross Income (AGI): $89,000
Standard deduction (single 2026): $16,100 (IRS)
Taxable income: $89,000 – $16,100 = $72,900
Bracket calculation:
Plus FICA:
Total federal burden: $18,018
Effective federal income tax rate: $10,750 ÷ $95,000 = 11.3%
Marginal rate: 22%
This example shows why every deduction at the $72,900 income level saves 22 cents of federal income tax per dollar — that's the marginal rate advantage.
The 2026 tax landscape reflects both the standard annual inflation adjustments and changes from the One Big Beautiful Bill (OBBB), which extended and modified several provisions. Key takeaways for taxpayers:
Standard deduction increased to $16,100 (single)/$32,200 (MFJ) — up from prior levels, reducing taxable income for the roughly 90% of filers who take the standard deduction (IRS).
Senior bonus deduction: A temporary above-the-line deduction of up to $6,000 per person for taxpayers 65+ (2025–2028), phasing out above $75,000 single / $150,000 MFJ. This is in addition to the standard deduction and the existing $2,050 additional standard deduction for seniors.
Estate and gift exemption: Now permanently set at $15M per individual ($30M per couple) under the OBBB, eliminating the prior sunset cliff (Fidelity).
SALT deduction: Check the current status of the state and local tax deduction cap, which was modified under OBBB provisions affecting filers who itemize.
Ordinary income from wages runs through the bracket system above. But long-term capital gains (assets held over one year) and qualified dividends are taxed at separate, lower rates: 0%, 15%, or 20%, depending on taxable income. For 2026, the 0% rate applies for single filers with taxable income up to approximately $48,350; the 20% rate kicks in above ~$533,400.
Additionally, the Net Investment Income Tax (NIIT) of 3.8% applies to the lesser of net investment income or the amount by which MAGI exceeds $200,000 single ($250,000 MFJ). This is not a bracket tax — it's a flat surtax on top of regular capital gains rates. A single filer with $250,000 in qualified dividends pays 15% capital gains tax plus 3.8% NIIT on the amount above $200,000 = 18.8% effectively on that tranche.
MFJ vs. single at the same income can produce dramatically different tax bills due to bracket thresholds and deduction amounts.
Wages, self-employment income, and ordinary interest are taxed at ordinary rates. Qualified dividends and long-term gains at lower preferential rates.
Every dollar of deduction reduces taxable income — the savings are worth your marginal rate (22% at $72,900 taxable income in the example above).
Credits reduce your tax bill dollar-for-dollar (not just taxable income), making them more powerful than deductions.
Traditional IRA, 401(k), SEP-IRA, and SIMPLE IRA contributions reduce taxable income directly.
SE income is subject to a 15.3% self-employment tax (employee + employer share), half of which is deductible above the line.
Rosa in Houston files head of household with two children. Gross wages: $58,000. Above-the-line: $2,000 student loan interest. AGI: $56,000. Standard deduction (HoH 2026): $24,150. Taxable income: $31,850. Tax: 10% on $17,700 = $1,770; 12% on $14,150 ($31,850 – $17,700) = $1,698. Subtotal: $3,468. Child Tax Credit: $2,000 × 2 = $4,000 (fully offsetting). Net federal income tax: $0. Rosa owes nothing and likely receives a refund. HoH bracket (IRS): 10% ≤$17,700; 12% $17,701–$67,450.
Derek runs a solo marketing consultancy from Denver with $110,000 in net self-employment income. SE tax: $110,000 × 92.35% × 15.3% = $15,532. Deductible half of SE tax: $7,766. SEP-IRA contribution: $20,000. AGI: $110,000 – $7,766 – $20,000 = $82,234. Standard deduction: $16,100. Taxable income: $66,134. Federal income tax: 10% on $12,400 = $1,240; 12% on $37,999 = $4,560; 22% on $15,735 = $3,462. Total federal income tax: $9,262. Total federal burden (SE + income tax): $24,794. Effective rate: 22.5% of gross SE income.
1. Maximize pre-tax retirement contributions. Every dollar into a traditional 401(k) or IRA reduces taxable income at your marginal rate. At 22%, a $7,500 IRA contribution saves $1,650 in federal tax.
2. If you're 65+, claim the OBBB senior bonus deduction. The temporary $6,000 above-the-line deduction (2025–2028) can save $660–$1,320 in federal tax depending on your bracket.
3. Consider bunching itemized deductions. If your deductions are close to the standard deduction threshold, bunching charitable contributions into alternate years lets you itemize one year and take the standard deduction the next.
4. Use capital losses to offset gains. You can deduct up to $3,000 of net capital losses against ordinary income per year and carry the rest forward.
5. Self-employed? Fund a SEP-IRA. The 2026 SEP limit is $72,000 — a powerful above-the-line deduction that can dramatically reduce SE and income tax (IRS).
For single filers: 10% on up to $12,400; 12% up to $50,400; 22% up to $105,700; 24% up to $201,775; 32% up to $256,225; 35% up to $640,600; 37% above $640,600. For MFJ filers, bracket thresholds are approximately doubled (IRS).
$16,100 for single filers and married filing separately; $32,200 for married filing jointly; $24,150 for head of household. Taxpayers 65+ or blind receive an additional $2,050 (single/HoH) or $1,650 (MFJ/MFS each) (IRS).
Your marginal rate is the tax rate on your last dollar of income — the bracket you've reached. Your effective rate is total tax divided by total income. Effective rates are always lower than marginal rates due to the progressive bracket structure.
Yes — select your state and the calculator applies the applicable 2026 state income tax schedule. State rates range from 0% (Texas, Florida, etc.) to over 13% (California top rate).
The One Big Beautiful Bill created a temporary above-the-line deduction of up to $6,000 per person for taxpayers age 65+ (2025–2028), phasing out above $75,000 single / $150,000 MFJ. It is in addition to the regular standard deduction.
Long-term capital gains (assets held 1+ year) and qualified dividends are taxed at 0%, 15%, or 20%, depending on your taxable income — lower than ordinary income rates. The 3.8% Net Investment Income Tax may also apply above $200,000 (single) MAGI.
Yes. Enter your net self-employment income and the calculator computes self-employment tax (15.3%), the deductible half, and the resulting income tax on your AGI.
The Child Tax Credit ($2,000/child, partially refundable), Earned Income Tax Credit (up to ~$7,830 for families with 3+ children in 2026), Child/Dependent Care Credit, American Opportunity Credit, and Lifetime Learning Credit are among the most impactful credits for most filers.
Brief disclaimer: This calculator provides estimates for educational and planning purposes only. Actual tax liability depends on your specific circumstances, applicable tax law, and IRS guidance. Tax brackets, deductions, and credits referenced reflect 2026 data and may change. Results should be treated as planning guidance rather than tax or legal advice. Consult a qualified tax professional for personalized advice.