What is the difference between marginal and effective tax rate?

Your marginal rate is the tax on the next dollar you earn. Your effective rate is total tax divided by total income. Because brackets are progressive, the effective rate is always lower than the marginal rate.

What is the standard deduction?

An amount you can subtract from income before tax is calculated. For 2025 it is $14,600 for single filers and $29,200 for married couples filing jointly. You take it instead of itemizing deductions.

Does the calculator include self-employment tax?

No. This covers wage income, where Medicare and Social Security are split with the employer. Self-employed people owe both halves of FICA, roughly double the payroll portion here.

Income Tax Calculator

Know what an income really keeps. A quick estimate of federal tax, payroll tax and state tax for a full year.

Last updated: August 5, 2026

Annual income

Filing status

State tax rate

Pre-tax deductions 401(k), HSA, etc. optional

Taxable income —

Federal income tax —

FICA (Social Security + Medicare) —

State income tax —

You keep (net income) —

How income tax works

The US uses progressive federal brackets. Each chunk of income is taxed at its own rate, so a higher salary never pushes lower income into higher tax — the brackets apply independently. This calculator subtracts the standard deduction, applies the brackets, then adds FICA payroll tax and any state rate you enter.

The formula

Taxable = income − standard deduction − pre-tax deductions

Federal = Σ (income in bracket × bracket rate)

Net = income − federal − FICA (7.65%) − state

Worked example

Single earner on $75,000, no state tax, no deductions.

Taxable ≈ $60,400. Federal ≈ $8,530. FICA ≈ $5,738. Net income ≈ $60,732, an effective federal rate near 11.4%.

That effective rate matters more than the headline bracket. Someone in the 22% marginal bracket does not pay 22% of everything — just 22% of the income above the lower thresholds.

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Frequently asked questions

Is the standard deduction applied automatically?

Yes, for wage income. Single filers get $14,600 and married joint filers $29,200. If you itemize more than the standard deduction, your taxable income would be slightly lower than shown.

Why does it say FICA when that is payroll tax?

FICA covers Social Security and Medicare, and on wages it is withheld alongside income tax. It behaves like a flat 7.65% tax (with a Social Security wage cap), so counting it shows the real total taken out.

Should I still file a tax return?

Almost always yes. Even when all tax was withheld, a return can claim refunds like the Earned Income Credit and child credits, so the effective outcome is frequently better than this estimate.

This is an estimate only (2025 brackets, standard deduction). It is not tax advice, and it ignores credits, capital gains and state-specific rules. For filing guidance consult a tax professional.