Instantly estimate your federal income tax, FICA, effective rate, and true take-home pay using the latest 2026 brackets.
This free federal income tax estimator uses the IRS-adjusted 2026 tax brackets to calculate your ordinary income tax, long-term capital gains tax, Social Security and Medicare (FICA), and how much you actually keep after all federal obligations.
Direct answers to the most common questions, in plain language. Skim if you're in a hurry; dig deeper below.
Effective is your actual rate; marginal is the rate on your next dollar.
The marginal rate is the bracket your last dollar of taxable income falls into — for most middle-income earners that is 22% in 2026. The effective rate divides your total federal tax by your total gross income. Because the US tax system is progressive, your effective rate is always lower than your marginal rate.
Itemize only if your deductible expenses exceed $15,750 (single) or $31,500 (married).
The 2026 standard deduction is $15,750 for single filers, $31,500 for married filing jointly, and $23,625 for head of household. Most taxpayers — especially after the 2017 TCJA limits on SALT deductions — will find the standard deduction exceeds their itemizable expenses. You only benefit from itemizing if your mortgage interest, state taxes (capped at $10,000), charitable gifts, and other deductions combined surpass those thresholds.
Every pre-tax dollar lowers your AGI, which can drop you into a lower bracket.
Traditional 401(k) contributions come out of your paycheck before federal income tax is calculated. That directly reduces your AGI. If you are near a bracket boundary — say, earning $50,000 as a single filer — contributing $2,000 to a 401(k) could drop you from the 22% bracket into the 12% bracket on those dollars, saving $200 in federal tax on that contribution alone, plus lowering potential phase-outs for other credits.
Yes. Long-term gains are taxed at 0%, 15%, or 20% — not ordinary rates.
Assets held more than one year qualify for long-term capital gains tax rates. In 2026, single filers pay 0% on gains up to $48,350 of taxable income, 15% up to $533,400, and 20% above that. These rates are significantly lower than the corresponding ordinary income brackets (10%–37%). Short-term gains — from assets held one year or less — are taxed as ordinary income.
The mechanics in short answers — no jargon, no upsell.
We start with your W-2 wages, interest income, and capital gains. Traditional 401(k), HSA, and deductible IRA contributions are subtracted to arrive at your Adjusted Gross Income (AGI) — the foundation of your tax calculation.
Your taxable income is AGI minus either the standard deduction or your itemized total — whichever is larger. Long-term capital gains are separated here; they face their own preferential rate schedule.
The 2026 tax brackets are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. You pay each rate only on the slice of income in that bracket — not on your entire taxable income. The calculator shows every bracket you touch.
After income tax is computed, the Child Tax Credit and other credits subtract dollar-for-dollar from your bill. FICA (Social Security + Medicare) is calculated on W-2 wages independently — it does not benefit from income deductions.
Designed so anyone can model their situation in under a minute, with or without a finance background.
Uses the IRS-inflation-adjusted 2026 tax brackets and standard deductions — not last year's numbers.
Shows Social Security (up to the $176,100 wage base), Medicare 1.45%, and the additional 0.9% that kicks in for high earners.
Instantly see whether standard or itemized deductions save you more — no guesswork.
Long-term gains are taxed at preferential rates, stacked correctly above your ordinary income.
Child Tax Credit phase-outs and other credits are subtracted from your bill before showing take-home.
Subtracts pretax deductions, federal income tax, and FICA to show what you actually keep each year.
Everything you might ask before, during, or after using this tool.
For single filers: 10% on income up to $11,925; 12% up to $48,475; 22% up to $103,350; 24% up to $197,300; 32% up to $250,525; 35% up to $626,350; 37% above that. Married filing jointly doubles most thresholds. Head of household brackets sit between single and married. These are the IRS-announced 2026 inflation adjustments.
For 2026: $15,750 for single filers, $31,500 for married filing jointly, and $23,625 for head of household. Married filing separately receives $15,750. These are up slightly from 2025 due to inflation adjustments.
FICA is Federal Insurance Contributions Act tax — the combined Social Security and Medicare payroll taxes. Social Security is 6.2% on wages up to $176,100 in 2026. Medicare is 1.45% on all wages with no cap. If you earn over $200,000 ($250,000 for married filers), you pay an additional 0.9% Medicare surtax on the excess. Unlike income tax, FICA is not reduced by 401(k) contributions or other deductions.
Every dollar you contribute to a traditional 401(k) reduces your taxable income by one dollar. At the 22% marginal bracket, a $10,000 contribution saves $2,200 in federal income tax — and you do not pay income tax on those funds until you withdraw in retirement. The 2026 employee contribution limit is $23,500 (plus $7,500 catch-up if you are 50+).
Itemizing makes sense when your deductible expenses exceed $15,750 (single) or $31,500 (married jointly). Common itemized deductions include: mortgage interest, state and local taxes (SALT, capped at $10,000), charitable donations, and medical expenses exceeding 7.5% of AGI. After the TCJA, about 90% of taxpayers benefit more from the standard deduction.
The Child Tax Credit is $2,000 per qualifying child under age 17. It begins to phase out at $200,000 of AGI for single filers and $400,000 for married filers, reducing by $50 for every $1,000 above the threshold. The credit is nonrefundable up to $2,000 per child (meaning it can reduce your tax bill to zero but not below zero for the basic credit). Up to $1,700 per child may be refundable as the Additional Child Tax Credit.
No. Long-term capital gains (assets held more than 12 months) are taxed at 0%, 15%, or 20% depending on your taxable income — not at your ordinary income bracket. In 2026, single filers pay 0% on long-term gains if their total taxable income is under $48,350. The 15% rate applies up to $533,400, and 20% above that. Short-term gains are taxed as ordinary income.
This calculator provides a close educational estimate for most straightforward tax situations. It covers federal income tax (ordinary + LTCG), FICA, the standard vs. itemized deduction comparison, and the Child Tax Credit. It does not cover AMT, self-employment tax, the Net Investment Income Tax (NIIT), state income tax, complex business income (Schedule C/E), or advanced credit calculations. Consult a tax professional for your actual return.
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A common misconception: moving into a higher tax bracket does not tax all your income at that higher rate. Only the portion of income that falls inside each bracket is taxed at that rate. A single filer earning $60,000 in 2026 pays 10% on the first $11,925, 12% on the next $36,550, and 22% only on the remaining $11,525 — not 22% on the full $60,000.
This design means a raise can never result in less take-home pay due to taxes. Each additional dollar earned may cross a bracket threshold, but only that dollar — and all dollars after it in that bracket — face the higher rate.
Your marginal rate matters most for decisions: whether to do a Roth conversion, take freelance income, or realize capital gains this year. Your effective rate is what you actually paid as a fraction of gross income — and that number is always lower than your marginal rate.
After the Tax Cuts and Jobs Act of 2017, the standard deduction roughly doubled and has continued rising with inflation. In 2026 it stands at $15,750 for single filers and $31,500 for married filers filing jointly. Combined with the $10,000 SALT cap, most taxpayers find itemizing is no longer worth the effort.
Who still itemizes? Taxpayers with large mortgage balances (interest is still deductible on loans up to $750,000), significant charitable giving, or high medical costs that exceed 7.5% of AGI. If your mortgage interest alone is $20,000 and you donated $5,000, your itemized total is $25,000 — just barely above the married standard deduction of $31,500 once you add capped SALT.
The break-even analysis is simple: add up your mortgage interest, state and local taxes (capped at $10,000), charitable gifts, and eligible medical expenses. If that total exceeds your standard deduction, itemize. Otherwise, take the standard deduction and move on.
Contributions to a traditional 401(k), HSA, or deductible IRA reduce your AGI before the bracket calculation runs. For a single filer in the 22% bracket, maxing out a 401(k) at $23,500 in 2026 reduces federal income tax by about $5,170 — a guaranteed, risk-free 22% return on those dollars before any investment gains.
HSA contributions are doubly valuable: tax-deductible going in, tax-free for qualified medical expenses coming out, and invested funds grow tax-free. This triple tax advantage makes the HSA arguably the best savings vehicle in the tax code for those with eligible high-deductible health plans.
Traditional IRA deductibility phases out at higher incomes if you are covered by a workplace retirement plan — check the current phase-out ranges. A non-deductible IRA contribution may still be worth making as the first step in a backdoor Roth strategy.
Long-term capital gains do not sit in a separate box — they stack on top of your ordinary income when determining which LTCG rate applies. Here is the mechanics: if you are a single filer with $40,000 of ordinary taxable income and $20,000 of long-term gains, your ordinary income fills the 0% LTCG bracket first (up to $48,350 for 2026). The $40,000 + $20,000 = $60,000 total means only the gains above $48,350 — about $11,650 — face the 15% LTCG rate.
Tax-loss harvesting is the strategy of selling losing positions to offset gains. Losses offset gains dollar for dollar; up to $3,000 of excess losses per year can offset ordinary income; additional losses carry forward indefinitely. If you have unrealized gains in a taxable account, reviewing your loss positions before year-end can meaningfully reduce your bill.
Two short notes worth reading before you trust any number on this page.
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Results are not financial, legal, or tax advice. Please consult a qualified professional before any decision about your loan, investments, or personal finances. Actual loan terms and charges depend on your bank and individual circumstances.
