Income Tax Calculator

How the Income Tax Calculator Works — and How to Read Your Paycheck Correctly

If you've ever looked at your paycheck and wondered where a third of your salary went, you're not alone. The U.S. tax system is progressive, which means different portions of your income are taxed at different rates — not all at the top rate. It also bundles together several different taxes (federal income tax, Social Security, Medicare, and possibly state tax), each with its own rules. This calculator walks through each of those, so you can see exactly how your gross income becomes your take-home pay. It also shows your marginal tax bracket, which is often misunderstood.

How marginal tax brackets actually work

The most common tax myth is: “If I get a raise into a higher bracket, I'll take home less money.” This is not true, and understanding why is worth the two minutes. Brackets apply only to the income that falls within them, not to your entire income. If the 22% bracket starts at $47,000 and you earn $50,000, only the $3,000 above $47,000 is taxed at 22%; the rest is taxed at 10% and 12% as it passes through the lower brackets. Your marginal rate is the rate on your last dollar — the 22% figure — while your effective rate is your total tax divided by your total income, which is always lower. Getting a raise can never reduce your take-home pay under the current system.

Social Security and Medicare (FICA)

FICA stands for the Federal Insurance Contributions Act, and it funds two programs: Social Security and Medicare. Together they take 7.65% of your gross wages — 6.2% for Social Security and 1.45% for Medicare. Your employer matches this amount on your behalf, but only your half appears on your paycheck. There's a wage cap on Social Security tax (for 2026, it's around $180,000 — the exact figure changes slightly each year), meaning any income above that cap is exempt from Social Security tax. Medicare has no cap, and higher earners pay an additional 0.9% surtax on income above $200,000 (single) or $250,000 (married filing jointly). FICA taxes are flat — they don't use brackets — which is why lower-income workers often pay a higher percentage of their income into FICA than they do in federal income tax.

Standard deduction and filing status

Before any federal income tax is calculated, the IRS subtracts a standard deduction from your income. For 2026, the standard deduction is roughly $15,000 for single filers, $30,000 for married filing jointly, and $22,500 for heads of household. Your taxable income is what remains after this deduction. Filing status also affects the bracket thresholds — married filing jointly brackets are roughly double the single brackets, which is why two earners filing separately often pay more total tax than they would filing together. Many people also qualify for above-the-line deductions like traditional IRA contributions, HSA contributions, or student loan interest, which reduce taxable income further.

Limitations to keep in mind

This calculator is a federal estimate and doesn't cover every situation. It ignores the Child Tax Credit, Earned Income Tax Credit, and many other credits that can significantly reduce what you owe. It uses the standard deduction only — itemizers who deduct mortgage interest, charitable contributions, or state and local taxes may owe less. It doesn't handle self-employment income, which is subject to an additional 15.3% self-employment tax. It doesn't account for retirement account contributions, alimony, capital gains, or the Alternative Minimum Tax. State income tax is only estimated with a flat rate you provide — many states use progressive brackets of their own, and a handful (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming) have no state income tax at all. Use this calculator to see your approximate take-home pay and effective tax rate — but for filing, always consult a qualified tax professional or use dedicated tax software.