Income Tax Calculator

How to Use This Income Tax Calculator

This income tax calculator estimates your total annual US tax liability for 2025 and 2026 — including federal income tax, state income tax, Social Security, and Medicare. Enter your gross wages (W-2 income), select your state and filing status, and see a full breakdown instantly. For the most accurate estimate, also add any self-employment income and open the optional Deductions and Credits panels.

Unlike a per-paycheck estimate, this tool focuses on your annual tax picture — useful for tax planning, comparing offers from employers in different states, or estimating what you owe at filing time. For a per-paycheck breakdown, use the paycheck calculator.

How US Federal Income Tax Brackets Work

The US uses a progressive tax system: income is divided into tiers, and each tier is taxed at a higher rate than the one below it. Only the dollars within each bracket are taxed at that bracket's rate — earning more never results in a lower take-home on income you already had.

2025 Federal Tax Brackets — Single Filer

• 10% on taxable income up to $11,925
• 12% on income $11,926–$48,475
• 22% on income $48,476–$103,350
• 24% on income $103,351–$197,300
• 32% on income $197,301–$250,525
• 35% on income $250,526–$626,350
• 37% on income over $626,350

Married filing jointly brackets are roughly double the single thresholds. Your marginal rate is the highest bracket you reach; your effective rate is always lower because most income is taxed at the lower rates below.

Standard Deduction vs. Itemizing

Before brackets apply, you subtract either the standard deduction or your total itemized deductions — whichever is larger. In 2025, the standard deduction is $15,750 for single filers and $31,500 for married filing jointly (slightly higher for 2026). About 90% of taxpayers take the standard deduction because it exceeds their itemized total.

When Itemizing Makes Sense

Consider itemizing if your qualifying expenses exceed the standard deduction:

• Mortgage interest — deductible on loan balances up to $750,000. A $400,000 mortgage at 7% generates roughly $27,000 in first-year interest.
• State and local taxes (SALT) — property tax plus state income (or sales) tax, capped at $10,000.
• Charitable donations — cash and non-cash contributions to qualifying organizations.
• Unreimbursed medical expenses — only the portion exceeding 7.5% of AGI.

Enter your estimated itemized total in the Deductions panel above and the calculator will automatically use whichever approach reduces your tax bill.

Tax Credits That Directly Reduce Your Bill

Tax credits reduce your final tax liability dollar-for-dollar — far more valuable than deductions, which only reduce taxable income. This calculator includes two of the most common credits.

Child Tax Credit (CTC)

$2,000 per qualifying child under 17. Phases out at $200,000 AGI for single filers ($400,000 for married filing jointly) — reduced by $50 per $1,000 above the threshold. Up to $1,700 per child may be refundable as the Additional Child Tax Credit if your earned income exceeds $2,500.

Other Credits

Use the “Other Tax Credits” field for education credits (American Opportunity Credit up to $2,500; Lifetime Learning Credit up to $2,000), the Retirement Savings Contributions Credit (Saver's Credit), or residential energy credits. Credits entered here are applied as non-refundable — they reduce your tax to $0 but do not generate a refund.

FICA Payroll Taxes — Social Security and Medicare

FICA taxes are separate from income tax and are calculated on gross wages before any deduction. In 2025, employees pay:

• Social Security: 6.2% on wages up to $176,100 (2025) or $184,500 (2026). No further withholding once you hit the wage base.
• Medicare: 1.45% on all wages with no cap.
• Additional Medicare: 0.9% on wages above $200,000 (single) or $250,000 (married jointly) — employee only, no employer match.

Self-employed individuals pay the full 15.3% SE tax (both halves), but can deduct the employer-equivalent half from gross income, reducing their AGI and therefore their income tax. See the paycheck calculator for a per-period FICA breakdown.

State Income Tax — What to Expect by State

State income tax can add anywhere from 0% to over 13% on top of federal taxes and varies significantly even at moderate incomes. Select your state above to include the exact state-level tax in your estimate.

No-Tax States

Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming have no individual income tax on wages. New Hampshire taxes only investment income, not earned wages.

Flat-Rate States

Illinois (4.95%), Michigan (4.25%), Colorado (4.40%), Indiana (3.05%), Kentucky (4.0%), Massachusetts (5.0%), North Carolina (4.5%), Pennsylvania (3.07%), and Utah (4.55%) use a single rate for all income levels.

Progressive States

Most states use graduated brackets similar to the federal system. California tops out at 13.3% on income over $1 million; Oregon at 9.9%; New York at 10.9% for city residents; Minnesota at 9.85%.

Local Income Tax — Cities and Counties That Add to Your Bill

In eleven states, your total tax burden includes a local income or occupational tax on top of state tax. After selecting your state above, a Locality dropdown will appear if local taxes apply. Choose your city or county to fold local tax into your annual estimate.

• New York: NYC residents pay an additional 3.078%–3.876% city income tax. Yonkers residents pay a 16.75% surcharge on their NY state tax. See the New York income tax calculator for a dedicated estimate.
• Maryland: every county and Baltimore City levies a piggyback income tax of 1.75%–3.20% on Maryland taxable income — mandatory for all MD residents.
• Ohio: most Ohio cities levy a flat municipal income tax on wages. Columbus and Cleveland are 2.5%; Cincinnati is 1.8%; Youngstown is 2.75%.
• Pennsylvania: Philadelphia levies a 3.75% resident wage tax; Pittsburgh 3.0%; other PA municipalities range from 1%–3.5%. PA has no state standard deduction, so local rates apply to nearly all gross wages.
• Indiana: Indiana counties levy an adjusted gross income tax (CAGIT) ranging from 0.5% to 2.02%. Marion County (Indianapolis) is 2.02%; Hamilton County is 1.1%.
• Michigan: Detroit levies 2.4% on residents; Grand Rapids 1.5%; most other Michigan cities 1% of Michigan taxable income.
• Oregon: Portland Metro SHS tax is 1% on Oregon AGI above $125k single / $200k joint; Multnomah County adds 1.5% on the same income. Combined, Portland/Multnomah residents above the threshold pay 2.5% extra.
• Kentucky, Alabama, Missouri, Delaware: gross-wage occupational taxes ranging from 1% (Kansas City, St. Louis) to 2.5% (Covington, KY).

How to Reduce Your Annual Tax Liability

Legal tax reduction strategies available to most US taxpayers:

• Maximize traditional 401(k) contributions — each pre-tax dollar contributed reduces taxable income by one dollar. The 2025 employee limit is $23,500 ($31,000 if age 50+). At the 22% bracket, maxing out a 401(k) reduces federal income tax by $5,170.
• Contribute to an HSA — Health Savings Account contributions are fully pre-tax (reducing income tax and, on payroll contributions, FICA). The 2025 limit is $4,300 for self-only coverage ($8,550 for family).
• Fund a Dependent Care FSA — up to $5,000 per household in childcare costs can be paid with pre-tax dollars, saving $1,100+ for a family in the 22% bracket.
• Harvest capital losses — realized investment losses offset capital gains dollar-for-dollar, and up to $3,000 per year can offset ordinary income.
• Bunch charitable donations — alternating large donation years with small ones lets you itemize in high-donation years and take the standard deduction in others.

Tax Disclaimer

This calculator provides estimates for informational purposes only. It is not tax advice. Federal tax brackets, FICA wage bases, standard deduction amounts, credit phase-out thresholds, and state tax laws can change annually. Results reflect 2025 and 2026 tax-year parameters based on IRS publications current at the time of publication. Consult a qualified tax professional or CPA for guidance on your specific situation.