Tax Calculator 2026
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Estimate your federal income tax, state tax, and FICA using 2026 IRS tax brackets. Shows effective rate and take-home pay.
Quick answer: Federal income tax is calculated using marginal brackets — for 2026 single filers, that's 10% up to $12,400, rising in steps to 37% above $640,600 (IRS). A $70,000 taxable income owes about $10,112 in federal tax, an effective rate of 14.4% — well below the 22% marginal bracket it falls into.
Estimated Take-Home Pay
$0
Based on 2026 single filer brackets. For estimation only — consult a tax professional for advice.
📐 Formula
Federal Tax = Sum of (income in each bracket × bracket rate). Effective Rate = Total Tax ÷ Gross Income × 100
How to Use the Tax Calculator
Enter your annual income
Input your total gross annual income before any deductions. Include salary, freelance income, and other taxable earnings.
Enter the standard deduction
The 2026 standard deduction is $16,100 for single filers and $32,200 for married filing jointly. Adjust only if you plan to itemize and your deductions exceed these amounts.
Enter your state tax rate
Input your state's flat income tax rate. States with no income tax (TX, FL, WA, NV) use 0%.
Review effective rate and take-home
The effective rate — total tax divided by total income — is the true measure of your tax burden, not your marginal bracket rate.
How Does the US Federal Income Tax System Work?
The US uses a progressive marginal tax system: different portions of your income get taxed at different rates. You don't pay the top rate on all your income — only on the income that falls inside that top bracket. It's one of the most commonly misunderstood parts of the tax code.
2026 Federal Income Tax Brackets (Single Filers)
| Tax Rate | Income Range | Tax on This Bracket |
|---|---|---|
| 10% | $0 – $12,400 | Up to $1,240 |
| 12% | $12,401 – $50,400 | Up to $5,800 |
| 22% | $50,401 – $105,700 | Up to $17,966 |
| 24% | $105,701 – $201,775 | Up to $41,024 |
| 32% | $201,776 – $256,225 | Up to $58,448 |
| 35% | $256,226 – $640,600 | Up to $192,979 |
| 37% | Over $640,600 | 37% on excess |
Marginal Tax Rate vs Effective Tax Rate
Your marginal tax rate is the rate on your last dollar earned. Your effective tax rate is total tax divided by total income — a much lower number. A $75,000 earner in the 22% bracket has an effective rate of around 13–15%, not 22%.
How to Reduce Your Tax Bill Legally
- 401(k) and IRA contributions reduce taxable income dollar for dollar. In 2026, you can contribute up to $24,500 to a 401(k) and $7,500 to an IRA.
- Health Savings Account (HSA) gives a triple tax advantage: contributions are deductible, growth is tax-free, and withdrawals are tax-free for medical expenses.
- Standard vs. itemized deductions — take whichever is larger. In 2026, the standard deduction is $16,100 (single) and $32,200 (married filing jointly).
- Tax-loss harvesting means selling investments at a loss to offset capital gains.
What Is FICA Tax?
FICA (Federal Insurance Contributions Act) taxes fund Social Security and Medicare. In 2026: Social Security is 6.2% on wages up to $184,500, and Medicare is 1.45% on all wages, plus a 0.9% surcharge on wages over $200,000. Your employer matches these contributions. Self-employed workers pay the full 15.3% themselves, as self-employment tax.
How to Calculate Federal Income Tax by Hand: Worked Example
Using the 2026 single-filer brackets shown above, take a $70,000 taxable income. Tax brackets are marginal — each dollar is taxed at the rate for its own bracket, not the top rate applied to the whole amount.
- 10% on the first $12,400 = $1,240.00
- 12% on the next $38,000 (from $12,401 to $50,400) = $4,560.00
- 22% on the remaining $19,600 (from $50,401 to $70,000) = $4,312.00
Total tax = $1,240.00 + $4,560.00 + $4,312.00 = $10,112.00. Your effective tax rate — total tax divided by total income — is $10,112 ÷ $70,000 = 14.4%, meaningfully below the 22% marginal rate that applies only to the last dollars earned. This gap between marginal and effective rate is the single most misunderstood number in personal tax planning.
How Do Deductions and Credits Change the Bill?
How does the standard deduction change taxable income?
Taxable income is gross income minus deductions, so the $70,000 figure above is already after the standard deduction (or itemized deductions) has been subtracted. A worker earning $82,000 gross who takes the standard deduction might land at roughly $70,000 taxable — meaning the bracket calculation above actually applies to a higher-earning household than the raw taxable figure suggests.
What is the practical difference between a deduction and a credit?
A deduction reduces taxable income, so its value depends on your marginal bracket — a $1,000 deduction saves $220 for someone in the 22% bracket. A credit reduces the tax bill dollar-for-dollar regardless of bracket — a $1,000 credit always saves exactly $1,000. Credits are strictly more valuable per dollar than deductions of the same size, which is why maximizing eligible credits (child tax credit, education credits, etc.) before optimizing deductions is the standard planning order.
How do pre-tax retirement contributions lower the bracket calculation?
Contributing to a traditional 401k or IRA reduces taxable income directly. On the $70,000 example, a $6,000 traditional contribution drops taxable income to $64,000 — removing that entire amount from the 22% bracket and saving $1,320 in tax for the year, in addition to the money still being invested for retirement.
Frequently Asked Questions
Sources & Methodology
Calculations are based on the most current publicly available data from authoritative government and industry sources: