Income Tax Calculator

Tax Year

Filing Status

Annual Income ($)

$

Additional Income ($)

$

Itemized Deductions ($)

$

Standard deduction: $0

Tax Credits ($)

$

State

Taxable Income: $0.00

Marginal Rate: 0.0%

Your Tax Estimate

Your Tax Bracket

Tax Saving Tips

Maximize Retirement Contributions

Contributing to retirement accounts like 401(k)s and IRAs can reduce your taxable income. For 2024, you can contribute up to $23,000 to a 401(k) and $7,000 to an IRA (plus catch-up contributions if you're 50 or older).

Take Advantage of Tax Credits

Tax credits provide a dollar-for-dollar reduction in your tax bill. Look into credits like the Child Tax Credit, Earned Income Tax Credit, American Opportunity Credit, and Lifetime Learning Credit.

Health Savings Accounts (HSAs)

If you have a high-deductible health plan, contributing to an HSA offers triple tax benefits: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses.

Charitable Contributions

Donations to qualified charitable organizations can be deducted if you itemize deductions. Consider bunching donations in alternate years to exceed the standard deduction threshold.

Tax-Loss Harvesting

If you have investments that have declined in value, consider selling them to offset capital gains from other investments. This strategy can reduce your overall tax liability.

Mortgage Interest Deduction

Homeowners can deduct mortgage interest on loans up to $750,000 (or $1 million if you bought your home before December 16, 2017). This is one of the largest tax breaks available to many taxpayers who itemize.

How Tax Calculations Work

Understanding Progressive Tax Brackets

The U.S. federal income tax system uses a progressive tax structure, which means that different portions of your income are taxed at different rates.

2024 Tax Bracket	Single Filers	Married Filing Jointly
10%	$0 - $11,600	$0 - $23,200
12%	$11,601 - $47,150	$23,201 - $94,300
22%	$47,151 - $100,525	$94,301 - $201,050
24%	$100,526 - $191,950	$201,051 - $383,900
32%	$191,951 - $243,725	$383,901 - $487,450
35%	$243,726 - $609,350	$487,451 - $731,200
37%	Over $609,350	Over $731,200

For example, if you're a single filer with $60,000 in taxable income, you don't pay 22% on all of it. Instead:

The first $11,600 is taxed at 10%
The next $35,550 ($47,150 - $11,600) is taxed at 12%
The remaining $12,850 is taxed at 22%

How Taxable Income Is Calculated

Your taxable income is not the same as your total income. Here's how it's calculated:

Start with Gross Income: All income from all sources
Subtract Above-the-Line Deductions: Contributions to retirement accounts, student loan interest, etc.
Result = Adjusted Gross Income (AGI)
Subtract Standard or Itemized Deductions: Whichever is greater
Result = Taxable Income

Standard Deduction (2024)

Single: $14,250
Married Filing Jointly: $28,500
Head of Household: $21,400
Married Filing Separately: $14,250

Tax Credits vs. Deductions: What's the Difference?

Tax Deductions

Reduce your taxable income before tax rates are applied.

Example: If you're in the 22% tax bracket, a $1,000 deduction saves you $220 in taxes.

Common deductions: Mortgage interest, state and local taxes, charitable donations

Tax Credits

Reduce your tax bill dollar-for-dollar after tax rates are applied.

Example: A $1,000 tax credit saves you $1,000 in taxes, regardless of your tax bracket.

Common credits: Child Tax Credit, Earned Income Credit, Education credits

State Income Taxes

In addition to federal income tax, most states also impose their own income taxes. State tax systems vary widely:

No Income Tax States

Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming

Flat Tax States

Colorado, Illinois, Indiana, Kentucky, Massachusetts, Michigan, North Carolina, Pennsylvania, Utah

Progressive Tax States

All other states use progressive tax brackets similar to the federal system

Note: This calculator uses simplified state tax rates. For precise state tax calculations, consult your state's tax authority or a tax professional.

Frequently Asked Questions

How does the Tax Calculator work?

Our Tax Calculator estimates your tax liability by applying relevant tax rates and rules to your income, deductions, and other financial details you provide. It calculates federal, state, or sales tax based on your inputs.

What information do I need to use it?

You’ll need your income (e.g., salary, wages), filing status (single, married), deductions or credits, and location (for state taxes). For sales tax, enter the purchase amount and tax rate.

Does it include both federal and state taxes?

Yes, if you provide your location and income details, it can estimate both federal and state taxes based on current tax brackets and rates, though some versions may focus on one or the other.

Can it calculate taxes for self-employment?

Some versions include self-employment tax (e.g., Social Security and Medicare) if you input business income and expenses. Otherwise, use a separate calculator or add those taxes manually.

How accurate is the Tax Calculator?

The calculator is accurate based on standard tax rates and your inputs, but it’s an estimate. Actual taxes may differ due to unique deductions, credits, or changes in tax laws.

Free Tax Calculator