US Income tax estimator

See your annual tax bill, effective rate, and marginal rate — using current official brackets.

By Mitch Duncan Last reviewed 26 May 2026 Methodology

Your income

Gross annual salary (USD)Filing status

Tax year: 2025 Â· Source: IRS Rev. Proc. 2024-40

Take-home

$64,666.00

Total tax & deductions

$15,334.00

Effective rate

19.2%

Marginal rate

22%

Breakdown

Gross income	$80,000.00
Federal income tax	âˆ’$9,214.00
Social Security (6.2%)	âˆ’$4,960.00
Medicare (1.45%)	âˆ’$1,160.00
Net (annual)	$64,666.00

Â· Federal income tax only — state and local taxes not included.
Â· Standard deduction applied: $15,000.

Want the full picture? Income Tax Rates 2025: US, UK, Canada & Australia →

How US federal income tax is calculated

Federal income tax uses progressive brackets — each slice of taxable income is taxed at that bracket's rate, not the top rate applied to your whole income. Your taxable income is gross income minus the standard deduction ($15,000 single / $30,000 married filing jointly for TY 2025).

Worked example (single filer, TY 2025)

Salary $90,000. Standard deduction $15,000. Taxable income $75,000.

First $11,925 at 10% = $1,193
Next $36,550 (to $48,475) at 12% = $4,386
Next $26,525 (to $75,000) at 22% = $5,836
Total federal income tax: $11,415

Effective rate: $11,415 ÷ $90,000 = 12.7%. Marginal rate: 22%. Only the portion above $48,475 is taxed at 22% — your effective rate is far lower than your top bracket.

Marginal vs effective rate

Your marginal rate is the rate on your next dollar — the top bracket you've reached. Your effective rate is total tax ÷ gross income, always lower because earlier brackets taxed at lower rates. A raise that pushes you into a higher bracket never lowers your take-home — only income above the threshold is taxed at the higher rate. This is the most common myth in personal finance.

What stacks on top of federal income tax

Social Security: 6.2% on wages up to $176,100 (2025 wage base).
Medicare: 1.45% on all wages, plus a 0.9% Additional Medicare surtax above $200,000 (single).
State income tax: 0% in TX/FL/WA/NV and others, up to a 13.3% top rate in California.

Your total deductions feel higher than the federal bracket alone suggests because FICA and (in most states) state tax stack on top.

Common mistakes

Treating marginal rate as the rate on all income. It's only the rate on the top slice.
Forgetting FICA. Social Security + Medicare add 7.65% before any income tax.
Treating brackets as cliffs. Moving up a bracket only affects income above the threshold.
Ignoring pre-tax contributions. 401(k), traditional IRA and HSA contributions lower taxable income at your marginal rate.

What this calculator doesn't cover

State and local income tax (varies hugely by state)
Alternative Minimum Tax (AMT)
Itemised deductions (mortgage interest, SALT, charitable)
Credits — Child Tax Credit, EITC, education credits

For a full return use the IRS withholding estimator or a qualified preparer. This calculator is for quick estimation.

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Key terms

Marginal Tax Rate Effective Tax Rate Tax Bracket Standard Deduction Gross Income Adjusted Gross Income (AGI)Taxable Income Tax Refund Full glossary →

Frequently asked questions

How is income tax calculated?

Income tax is calculated by applying progressive brackets to taxable income — each slice of income is taxed at its bracket's rate, not the top rate applied to the whole amount. Your taxable income is gross income minus any allowed deductions or personal allowances. The calculator above handles the bracket-by-bracket maths for each market.

What's the difference between marginal and effective tax rate?

Your marginal rate is the rate paid on the next dollar earned — the top bracket your income reaches. Your effective rate is total tax divided by total income, which is always lower because earlier income is taxed at lower bracket rates. A 22% marginal rate often produces a 12–15% effective rate.

What deductions can I claim?

Standard deductions or personal allowances are subtracted automatically by region: US standard deduction varies by filing status; UK personal allowance is fixed at £12,570; Canada has the basic personal amount; Australia has the tax-free threshold. Itemising (US) or claiming additional reliefs (UK, CA, AU) can lower tax further depending on circumstances.

Are tax brackets indexed to inflation?

In the US, federal brackets are inflation-indexed annually. The UK has frozen most thresholds through several recent budgets, causing 'fiscal drag' as wage growth pushes earners into higher bands. Canada indexes brackets annually. Australia adjusts thresholds occasionally but not on a fixed schedule. The calculator above uses the latest published brackets for each market.

Why does my paycheck show different tax than my annual estimate?

Paycheck withholding is an estimate based on your W-4 (US), tax code (UK), or TD1 (Canada) — it doesn't always match your actual annual liability. Differences come from variable income, multiple jobs, claimed allowances, or one-time bonuses. The annual reconciliation at tax time settles up; this calculator estimates the year-end figure.

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