Income Tax Calculator 2026

How federal income tax is calculated in 2026

Federal income tax is progressive: your income is not taxed at one flat rate — each slice of income is taxed at the rate for its bracket. The math runs in four steps:

1. Gross income: all taxable income — wages, self-employment earnings, interest, and the rest.
2. Adjusted gross income (AGI): gross income minus pre-tax contributions (such as 401(k), traditional IRA, or HSA) and one-half of any self-employment tax.
3. Taxable income: AGI minus the standard deduction (or itemized deductions, whichever is larger) and any OBBB deductions you qualify for.
4. Apply the brackets: taxable income is taxed bracket by bracket under the tables below, and the pieces add up to your federal income tax.

2026 tax brackets — single

| Rate | Taxable income | |---|---| | 10% | $0 – $12,400 | | 12% | $12,400 – $50,400 | | 22% | $50,400 – $105,700 | | 24% | $105,700 – $201,775 | | 32% | $201,775 – $256,225 | | 35% | $256,225 – $640,600 | | 37% | over $640,600 |

2026 tax brackets — married filing jointly

| Rate | Taxable income | |---|---| | 10% | $0 – $24,800 | | 12% | $24,800 – $100,800 | | 22% | $100,800 – $211,400 | | 24% | $211,400 – $403,550 | | 32% | $403,550 – $512,450 | | 35% | $512,450 – $768,700 | | 37% | over $768,700 |

Head of household, married filing separately, and qualifying surviving spouse each have their own brackets; the calculator has all five filing statuses built in, and every table comes from IRS Rev. Proc. 2025-32.

2026 standard deduction

| Filing status | Standard deduction | |---|---| | Single / married filing separately | $16,100 | | Married filing jointly / qualifying surviving spouse | $32,200 | | Head of household | $24,150 |

Taxpayers who are 65 or older or blind get an additional amount: $1,650 per person if married or a qualifying surviving spouse, and $2,050 per person if single and not a qualifying surviving spouse.

Your marginal rate is not your effective rate. The marginal rate is the bracket your last dollar of income falls into; the effective rate is total tax divided by total income. A single filer earning $75,000 sits in the 22% bracket yet pays an effective rate of only about 10.2% — because most of that income was taxed at 10% and 12%.

FICA: the other tax on every paycheck

Federal income tax is not the whole story: W-2 wages also owe FICA payroll tax, a separate system with its own rates and caps. For 2026 that means 6.2% for Social Security on wages up to $184,500, plus 1.45% for Medicare with no cap.

• Social Security, 6.2%: applies only to wages up to the 2026 cap of $184,500 (source: SSA 2026 COLA announcement, Federal Register, 2025-11-03).
• Medicare, 1.45%: no wage cap.
• Additional Medicare Tax, 0.9%: applies to wages above $200,000 (single) or $250,000 (married filing jointly); your employer does not match this portion.

Self-employed workers — 1099 contractors and freelancers — have no employer to split the bill. They pay the full 15.3% themselves as self-employment tax, figured on 92.35% of net self-employment income; the Social Security portion shares the same $184,500 cap with any W-2 wages. In exchange, half of the self-employment tax is deductible when computing AGI. The calculator runs the whole chain automatically: self-employment tax, then the AGI deduction, then the income-tax effect.

New for 2026: four OBBB above-the-line deductions

The One Big Beautiful Bill Act created four new above-the-line deductions for tax years 2025 through 2028 — you can claim them even if you take the standard deduction. All four are built into this calculator.

| Deduction | Cap | Phase-out begins at MAGI of | |---|---|---| | Age 65 or older | $6,000 per person | $75,000 (single) / $150,000 (MFJ) | | Qualified tips | $25,000 | $150,000 / $300,000 | | Qualified overtime (premium portion only) | $12,500 ($25,000 MFJ) | $150,000 / $300,000 | | Qualified car loan interest | $10,000 | $100,000 / $200,000 |

Two rules matter. The tips deduction does not apply to workers in specified service trades or businesses (SSTBs), and the overtime deduction covers only the premium portion — the pay above your regular hourly rate, not the entire overtime check. Source: the IRS OBBB page, accessed 2026-08-27. One caution: the IRS has not finalized the exact phase-out mechanics, so the calculator takes the conservative route — if your MAGI is above the threshold it denies the deduction and tells you so, which may slightly understate your deduction.

What moves your result the most

Five inputs drive nearly everything this calculator shows: filing status, pre-tax contributions, self-employment income, your state, and withholding. In rough order of impact:

1. Filing status. On the same $100,000 of income, a married couple filing jointly pays thousands less than a single filer — the MFJ brackets and standard deduction are each nearly twice as wide.
2. Pre-tax contributions. Every additional $1,000 into a 401(k) cuts this year's federal tax by $220 if you are in the 22% bracket — the highest-value legal tax break most workers have.
3. Self-employment income. On the same $50,000, a self-employed worker carries about $3,800 more payroll tax than a W-2 employee — the employer share a W-2 worker never sees — though half of it comes back as an AGI deduction.
4. Your state. Nine states — Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming — levy no state income tax on wages; the rest vary widely. The calculator shows an estimate with its source for states we have verified and leaves the rate field blank for states we have not, so you can enter a figure you trust — the results page clearly separates "estimate" from "your input."
5. Withholding. Withholding does not change what you owe — it only decides whether April brings a refund or a bill. A big refund is not a win; it is an interest-free loan you gave the IRS.

Four common mistakes

Most bad tax surprises trace back to four misunderstandings: misreading brackets, forgetting FICA, overvaluing refunds, and mixing up deductions with credits.

• Treating the marginal rate as the effective rate. "I'm in the 24% bracket" does not mean all your income is taxed at 24%.
• Forgetting FICA. Counting income tax alone understates the real tax burden by 7.65% for W-2 workers — and by 15.3% for the self-employed.
• Thinking a big refund means you paid less. A refund only means you over-withheld during the year.
• Confusing deductions with credits. A $1,000 deduction saves $220 in the 22% bracket; a $1,000 credit saves the full $1,000. This calculator does not include tax credits such as the Child Tax Credit, so your actual tax bill may be lower.

How to use this calculator

Enter your income, pick your filing status and state, and results update instantly — the page opens pre-filled with a $75,000 single filer as a worked example. Then refine it to your situation:

1. Type your W-2 wages into Annual gross income. Self-employment income has its own field under Advanced options.
2. Choose your Filing status — all five are built in, from Single to Qualifying surviving spouse — and your State. For states we have verified, the State tax rate field prefills an estimate you can edit; for states we have not verified, it stays blank so you can enter a rate you have looked up.
3. Open Advanced options to add Pre-tax contributions (401(k), HSA…), Self-employment income (1099), Qualified tips received, Overtime premium portion (the extra “half”), Qualified car loan interest, and Federal tax already withheld from box 2 of your W-2. If you are 65 or older, check I am 65 or older (joint filers also see My spouse is 65 or older) to pick up the additional standard deduction and the new senior deduction.
4. Read the results: Take-home pay (after all taxes) on top, then Federal income tax with its effective rate, FICA (Social Security & Medicare), Self-employment tax when relevant, State tax with its source label, Total tax, and your Marginal tax bracket. Enter withholding and you also get an Estimated refund or Estimated amount owed.
5. Expand Federal bracket breakdown to see how much income landed in each bracket and exactly how much tax each bracket contributed.

Frequently asked questions

The questions people ask most about 2026 federal taxes — bracket math, deductions, tips and overtime, state tax, and refunds. Short answers here; the sections above carry the full detail.

How much federal tax do I pay on $75,000?

Single filer, standard deduction, no other adjustments: about $7,670 of federal income tax for 2026, an effective rate of roughly 10.2%. Add $5,737.50 of FICA and the federal total is about $13,408. Married filing jointly on the same income: roughly $3,790 of income tax. Enter your own status and state above for your number.

What is the standard deduction for 2026?

For tax year 2026: $16,100 for single filers, $32,200 for married couples filing jointly, and $24,150 for heads of household. Taxpayers 65 or older or blind get an extra $1,650 per person if married, or $2,050 if single. Source: IRS Rev. Proc. 2025-32.

What is the difference between marginal and effective tax rate?

Your marginal rate is the bracket your next dollar falls into; your effective rate is total tax divided by total income. Progressive brackets mean the effective rate is always lower — a single filer earning $75,000 sits in the 22% bracket but pays about 10.2% overall. Judge raises by the marginal rate, your total burden by the effective rate.

Are tips and overtime really tax-free now?

Not tax-free — deductible. For tax years 2025 through 2028, qualified tips are deductible up to $25,000 and the premium portion of overtime up to $12,500, with both phasing out above set income thresholds. Tips and overtime still owe FICA, and the federal deduction does not automatically exempt them from state tax.

Does this calculator include state taxes?

Yes, in three clearly labeled cases. The nine verified no-income-tax states show zero. States with verified rates show an estimate with its source. For states we have not verified yet, the rate field stays blank — enter a rate yourself and the result is marked as your input. State figures follow each state's revenue department; verification is ongoing.

How is self-employment income taxed?

Net self-employment income × 92.35% × 15.3% gives your self-employment tax, and the Social Security portion shares the $184,500 wage cap with any W-2 wages. Half of the self-employment tax then reduces AGI, and the remaining net income flows into the regular income-tax brackets. Enter your net self-employment income under Advanced options and the chain runs automatically.

Will I get a refund or owe money?

Enter the federal tax already withheld from your pay — box 2 of your W-2 — in the Advanced options field. The results then show an estimated refund when withholding exceeds your tax, or the estimated amount you still owe. Leave it blank and you see only the total tax due.

How accurate is this calculator?

The 2026 brackets and standard deduction were checked line by line against IRS Rev. Proc. 2025-32, and the FICA cap comes from the SSA's official announcement. Not included: tax credits, itemized deductions, and preferential capital-gains rates; OBBB phase-outs use a conservative rule. Treat results as estimates and file using IRS forms or a tax professional.

Sources: IRS Rev. Proc. 2025-32 (2026 tax brackets and standard deduction; verified against the original text on 2026-09-21); SSA 2026 COLA announcement (Federal Register, 2025-11-03; $184,500 Social Security wage cap); IRS OBBB page (accessed 2026-08-27). More tools in the finance calculators hub.

Disclaimer: This calculator provides informational estimates only — it is not tax, financial, or legal advice. Figures are based on the sources above as of the dates shown. For decisions about your own return, consult a licensed tax professional.