Income Tax Calculator - Free Federal and State Tax Calculator with ATL/BTL Deductions, Tax Credits, AGI and Taxable Income Calculator
âšī¸ Modify the values and click the Calculate button to use
Income Tax Calculator
Age 0-16
Age 17 or older
Income
(Age 65+ qualifies for additional deduction)
(W-2 box 1)
(W-2 box 2)
(W-2 box 17)
(W-2 box 19)
(e.g. 5.5 for 5.5%, check your state tax website)
* Tax calculations are estimates based on 2025 federal tax brackets and One Big Beautiful Bill provisions. Consult a tax professional for personalized advice.
Modify the values above and click the Calculate button to see your tax refund or amount owed
What is an Income Tax Calculator?
An income tax calculator is a free online tool that estimates your federal and state income taxes based on your gross income, filing status, deductions, credits, and location. It calculates Adjusted Gross Income (AGI), taxable income using the progressive tax bracket system, state income tax, and FICA taxes (Social Security, Medicare, and Additional Medicare Tax).
Our income tax calculator provides accurate estimates with Above-the-Line (ATL) deductions, Below-the-Line (BTL) deductions (Standard vs Itemized), tax credits, and includes the latest One Big Beautiful Bill provisions (tips deduction, overtime compensation, car loan interest, seniors deduction). It's perfect for tax planning, comparing job offers, budgeting, and understanding your tax liability and take-home pay.
How is Income Tax Calculated?
Income tax calculation involves multiple steps with ATL/BTL deductions, tax credits, and progressive tax brackets:
- Gross Income: Wages + Interest + Dividends + Capital Gains + Other Income
- ATL Deductions: IRA contributions, student loan interest, tips, overtime, car loan interest, seniors deduction
- AGI (Adjusted Gross Income): Gross Income - ATL Deductions
- BTL Deductions: Standard ($15,000 single/$30,000 married) or Itemized (mortgage, charity, medical, SALT)
- Taxable Income: AGI - BTL Deductions
- Federal Tax: Applied progressively across 7 tax brackets (10% to 37%)
- State + Local Tax: User enters their combined state and local tax rate (0% to ~13%)
- FICA Tax: Social Security (6.2%, capped at $176,100) + Medicare (1.45% + 0.9% additional for high earners)
- Tax Credits: Subtract credits (Child Tax Credit, Education Credits, etc.) from total tax
Your take-home pay is gross income minus all these taxes. The effective tax rate is your total tax divided by gross income, typically 15-25% for middle-income earners. State and local tax rates vary by location - enter your specific rate for accurate calculations.
Federal Tax Brackets
Single Filers:
- 10% - $0 to $11,600
- 12% - $11,600 to $47,150
- 22% - $47,150 to $100,525
- 24% - $100,525 to $191,950
- 32% - $191,950 to $243,725
- 35% - $243,725 to $609,350
- 37% - Over $609,350
Married Filing Jointly:
- 10% - $0 to $23,200
- 12% - $23,200 to $94,300
- 22% - $94,300 to $201,050
- 24% - $201,050 to $383,900
- 32% - $383,900 to $487,450
- 35% - $487,450 to $731,200
- 37% - Over $731,200
Tax Saving Strategies
- đ°401(k) Contributions: Max contribution $23,500 - reduces taxable income
- đĨHSA Accounts: Triple tax advantage - $4,300 (single) or $8,550 (family) limit
- đNEW: Tips Deduction: Deduct up to $25,000 in qualified tips
- đNEW: Overtime Deduction: Deduct up to $12,500 (single) or $25,000 (married)
- đNEW: Car Loan Interest: Deduct up to $10,000 in interest
- đNEW: Seniors Deduction: Age 65+? Claim $6,000 (single) or $12,000 (married)
- đ¨âđŠâđ§Child Tax Credit: Up to $2,200 per qualifying child
- đEducation Credits: American Opportunity Credit ($2,500) or Lifetime Learning Credit ($2,000)
- đ Itemize Deductions: Mortgage interest, property taxes, charitable donations
Frequently Asked Questions About Income Tax
How do I calculate my income tax?
To calculate your income tax, enter your annual gross income, select your filing status (single, married, or head of household), and enter your state/local tax rate. The calculator will compute federal tax using current tax brackets, state/local tax (using your entered rate), and FICA tax (Social Security and Medicare). Your take-home pay and effective tax rate will be displayed instantly. The calculation accounts for the current standard deduction and progressive tax brackets.
What is the federal tax rate?
The federal tax rates range from 10% to 37%, applied progressively across seven tax brackets. For single filers: 10% ($0-$11,600), 12% ($11,600-$47,150), 22% ($47,150-$100,525), 24% ($100,525-$191,950), 32% ($191,950-$243,725), 35% ($243,725-$609,350), and 37% (over $609,350). Married filing jointly has different brackets with higher income thresholds. Remember, only income within each bracket is taxed at that rate, not your entire income.
How is take-home pay calculated?
Take-home pay is your gross income minus all taxes: federal income tax, state/local income tax (based on your entered rate), Social Security tax (6.2%), and Medicare tax (1.45%). The calculator applies 2025 tax brackets and standard deductions to determine your net income. For example, a $75,000 salary typically results in approximately $57,000-$62,000 take-home pay, depending on your state/local tax rate and filing status. Nine states (Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming, and New Hampshire) have no state income tax (enter 0% for these states).
What is the difference between effective and marginal tax rate?
Your marginal tax rate is the rate applied to your last dollar of income (your highest tax bracket). Your effective tax rate is the average rate you pay on all your income (total tax divided by gross income). For example, if you earn $75,000, you might be in the 22% marginal bracket, but your effective rate might be only 15% because lower portions of your income are taxed at lower rates (10% and 12%). The marginal rate matters for decisions about earning additional income or taking deductions.
How can I reduce my tax liability?
Reduce taxes by maximizing 401(k) contributions (up to $23,500), contributing to HSA accounts ($4,300 single/$8,550 family), claiming all eligible tax credits (child tax credit up to $2,200 per child, education credits up to $2,500), and itemizing deductions if they exceed the standard deduction ($15,000 single/$30,000 married). New deductions available: deduct up to $25,000 in qualified tips, $12,500/$25,000 in overtime, $10,000 in car loan interest, and $6,000/$12,000 seniors deduction (age 65+). Other strategies include tax-loss harvesting, charitable donations, and timing income and deductions. Consider consulting a tax professional for personalized strategies tailored to your situation.