Federal Income Tax Calculator
See how progressive tax brackets apply to your income and compare your effective vs marginal rate
Your income after deductions (standard or itemized)
How Progressive Tax Brackets Work
The U.S. federal income tax uses a progressive system with seven brackets. Each bracket applies its rate only to the income within that range — not to your entire income. This means moving into a higher bracket only affects the dollars above the threshold.
Effective vs. Marginal Rate
Your marginal rate is the rate on your last dollar of income. Your effective rate is the blended average across all brackets. Most people's effective rate is significantly lower than their marginal rate.
Assumptions
- This calculator uses taxable income (after deductions), not gross income
- Only federal income tax is calculated — state tax is not included
- FICA taxes (Social Security + Medicare) are not included
- Bracket data sourced from IRS Revenue Procedure 2024-40
Frequently Asked Questions
What is the difference between marginal and effective tax rate?
Your marginal tax rate is the rate applied to your last dollar of income — the highest bracket you reach. Your effective tax rate is the average rate across all your income (total tax ÷ total income). Because of progressive brackets, your effective rate is always lower than your marginal rate.
Do I pay my highest tax rate on all my income?
No. The U.S. uses a progressive tax system. Each bracket rate only applies to the income within that bracket range. For example, if you earn $60,000 as a single filer in 2025, you pay 10% on the first $11,925, 12% on income from $11,926 to $48,475, and 22% only on income from $48,476 to $60,000.
What is taxable income?
Taxable income is your gross income minus deductions (either the standard deduction or itemized deductions). This calculator uses taxable income as the input — the amount after deductions have been applied. For 2025, the standard deduction is $15,750 for single filers, $31,500 for married filing jointly, and $23,625 for head of household. For example, if you earn $90,000 and take the standard deduction as a single filer: $90,000 − $15,750 = $74,250 taxable income.
How are the 2025 tax brackets different from 2024?
The 2025 brackets use the same seven rates (10% through 37%) as 2024, but the income thresholds are adjusted upward for inflation per IRS Revenue Procedure 2024-40. This means slightly more income is taxed at each lower rate compared to the prior year.
Does this calculator include state income tax?
No. This calculator shows federal income tax only. State income tax varies significantly — some states have no income tax, others have flat rates, and many have their own progressive brackets. Your total tax burden includes both federal and state taxes.
Does this calculator include FICA taxes (Social Security and Medicare)?
No. FICA taxes (7.65% for employees, 15.3% for self-employed) are separate from income tax and are not included in this calculation. Your total tax burden is higher than what this calculator shows.
Important Considerations
- This calculator provides an estimate for educational purposes only and is not tax advice.
- Your actual tax liability depends on credits, deductions, and other factors not modeled here.
- Consult a qualified tax professional for personalized guidance.
- Tax brackets are adjusted annually for inflation by the IRS.