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Tax Calculator

Estimate annual taxes and after-tax income with filing status and deduction options.

Enter Values

Annual Income

Filing Status

Deduction Type

Itemized Amount

State Tax Mode

Other State Tax Rate Percent

Pre-tax Retirement Contribution

Pre-tax Health Insurance

Result

Enter values above and click Calculate to see your result.

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Formula

Tax estimate is based on taxable income, filing status, deductions, and payroll taxes.

The tool applies simplified bracket logic and payroll taxes for planning estimates.

Worked Example

Income 85000, filing single, standard deduction.

How US Income Tax Is Calculated

Federal income tax uses progressive brackets where different portions of your income are taxed at increasing rates. Your effective rate is always lower than your marginal bracket.

Taxable income = gross income minus deductions (standard or itemized) and pre-tax contributions (401k, health insurance)
Progressive brackets mean only income above each threshold is taxed at the higher rate, not your entire income
Filing status (single, married, head of household) determines bracket widths and standard deduction amounts
State taxes vary from 0% (Texas, Florida, Nevada) to over 13% (California), significantly affecting take-home pay

This is a planning estimate, not tax advice. Consult a tax professional or use IRS tools for filing accuracy.

You can also calculate changes using our Salary Calculator, Commission Calculator or Mortgage Calculator.

Frequently Asked Questions

Is this accurate enough for tax filing?

No. This is a planning estimate using simplified bracket logic. Use IRS tax software or a CPA for actual filing. This tool helps you understand approximate tax liability for budgeting.

Can I include state income tax?

Yes. Select a state preset (California, New York) or enter a custom state tax rate to see combined federal and state tax impact.

What is the difference between marginal and effective tax rate?

Your marginal rate is the tax bracket on your last dollar of income. Your effective rate is total tax divided by total income, and it is always lower because earlier dollars are taxed at lower rates.

Do pre-tax contributions reduce my tax?

Yes. 401(k) contributions and pre-tax health insurance premiums reduce your taxable income, which directly reduces the tax you owe.

AI Assistant

Ask about this calculator

I can help you understand the tax calculator formula, interpret your results, and answer follow-up questions.

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