Federal Income Tax Calculator Estimate Your Tax Liability With This Calculator

This information may help you analyze your financial needs. It is based on information and assumptions provided by you regarding your goals, expectations and financial situation. The calculations do not infer that the company assumes any fiduciary duties.

Step 3 – Local income tax

It also juggles various deductions like a pro, taking into account everything from mortgage interest to your generous charitable contributions. This tool doesn’t just adapt to your current situation; it grows with you, ensuring your tax estimates remain spot-on year after year. The tax brackets and standard deduction amounts are based on the latest IRS guidelines for 2025. If you have a simple tax situation and have filled out your W-4 correctly, taxes already withheld from your paychecks might cover that bill for the year. Likewise, if you’re a freelancer or a taxpayer who must pay estimated taxes, payments you made during the year might also cover your bill.

Using the IRS tax calculator is a great first step, but navigating real tax situations can be overwhelming, especially with dependents, multiple income sources, or complex deductions. The cost of office supplies, vehicles, a home office, travel, and inventory can all be deducted from your business income. That results in a lower net profit, which puts you in a lower tax bracket. The money you contribute to 401(k)s, traditional IRAs, and health savings accounts is taken from your paycheck before taxes. Follow the steps below to work out your income tax liability. Different portions of your taxable income are taxed at different rates.

Table 1: State Average Tax Changes per Filer per State Under One Big Beautiful Bill Tax Changes, 2026 – 2035

We multiplied the average sales tax rate for a county by the household income after taxes. This balance is then multiplied by 35% to estimate the sales tax paid.For property taxes, we compared the median property taxes paid in each county. The federal personal income tax that is administered by the Internal Revenue Service (IRS) is the largest source of revenue for the U.S. federal government.

Paycheck & Benefits

For starters, federal tax rates apply only to taxable income. This is different than your total income (also called gross income). Taxable income is always lower than gross income since the U.S. allows taxpayers to deduct certain income from their gross income to determine taxable income. Tax credits are only awarded in certain circumstances, however. Some credits are refundable, which means you can receive payment for them even if you don’t owe any income tax.

Can this calculator help with state taxes?

As this calculator shows, even if taxable income “puts” you in a particular income tax bracket, overall you benefit from being taxed at the lower brackets first. This is different than your total income, otherwise known as gross income. These are called “marginal tax rates” – they do not apply to total income, but only to the income within a specific range. Income taxes in the U.S. are calculated based on tax rates that range from 10% to 37%.

It’s not just about what you owe; it’s also about how much you can save. High earners pay more in taxes, as portions of their income are subject to higher tax rates. Deciding how to take your deductions — that is, how much to subtract from your adjusted gross income, thus reducing your taxable income — can make a huge difference in your tax bill. If it turns out that your tax withholding, payments, or any credits you qualify for did not cover your liability, you may need to federal income tax calculator pay the rest at tax time. There are numerous other credits, including credits for the installation of energy-efficient equipment, a credit for foreign taxes paid and a credit for health insurance payments in some situations. This means that employers withhold money from employee earnings to pay for taxes.

• If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• Yes, based on your withholdings, this tool can help estimate whether you’ll owe taxes or get a refund.
• This estimator takes your gross income and then subtracts applicable deductions and adjustments, such as 401(k) contributions, HSA contributions, and your standard or itemized deductions.
• Instead, they apply directly to your tax bill, which can be hugely beneficial.
• Many taxpayers claim the standard deduction, which varies depending on filing status, as shown in the table below.

Here’s how IRS installment plans work, plus some other options for paying a big tax bill. This could be a sign that you’re having too much tax withheld from your paycheck and living on less of your earnings all year. You can use Form W-4 to reduce your withholding easily now so you don’t have to wait for the government to give you your money back later. If you’re unsure how to maximize your refund, accurately file, or handle credits like the Child Tax Credit, our expert tax professionals are here to help.

Unlike adjustments and deductions, which apply to your income, tax credits apply to your tax liability, which means the amount of tax that you owe. Once you have subtracted deductions from your adjusted gross income, you have your taxable income. If your taxable income is zero, that means you do not owe any income tax. Note that there are no longer personal exemptions at the federal level.

“If my only income is social security do i have to file taxes? How much of my social security income is taxable?” Are you wondering about these type of questions? If so, use this social security income tax calculator to find out if you owe any taxes on your social security income and other income. If your only income in 2025 comes from your Social Security or the SSEB portion of Tier 1 Railroad Retirement benefits, these benefits are generally not IRS taxable and you probably don’t need to file a return. However, if you have other income in addition to your benefits, you may still need to file a return, even if none of your benefits are taxable.

• Always be sure to use the tool on secure devices and networks.
• Whether or not you get a tax refund depends on the amount of taxes you paid during the year.
• In order to determine sales tax burden, we estimated that 35% of take-home (after-tax) pay is spent on taxable goods.

Across all individual tax filers throughout the country, the average tax cut per taxpayer will be $3,752 in 2026. The same paycheck covers less goods, services, and bills. Click here for a 2025 Federal Tax Refund Estimator.Taxes are unavoidable and without planning, the annual tax liability can be very uncertain. Use the following calculator to help determine your estimated tax liability along with your average and marginal tax rates. To use the tax calculator, you’ll need your filing status, age, number of dependents, whether you plan to claim the standard deduction or itemize deductions, and how much you paid in federal taxes for the year. This means there are higher tax rates for higher income levels.

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However, this tax payment is divided in half between the employer and the employee. However, with that in mind there is a new tax rate which has been enlisted for those earning more than these amounts. SmartAsset’s interactive map highlights the counties with the lowest tax burden. Scroll over any county in the state to learn about taxes in that specific area.

If you’re ready to find an advisor who can help you achieve your financial goals, get started now. Independent contractors, unlike W-2 employees, will not have any federal tax deducted from their pay. This means that because they are not considered employees, they are responsible for their own federal payroll taxes (also known as self-employment tax). Both employers and employees split the Federal Insurance Contribution Act (FICA) taxes that pay for Social Security and Medicare programs. The FICA rate due every pay period is 15.3% of an employee’s wages.