Tax Calculator - Estimate Your Income Tax Liability

Federal Income Tax Calculator

Estimate your tax liability based on income, filing status, deductions, and credits.

Filing Information

Tax Year

Filing Status

Age

Income

Wages, Salary, Tips ($)

Interest Income ($)

Dividends ($)

Business Income/Loss ($)

Capital Gains/Losses ($)

Other Income ($)

Adjustments & Deductions

Deduction Type

401(k) Contributions ($)

IRA Contributions ($)

HSA Contributions ($)

Tax Credits

Child Tax Credit ($)

Child & Dependent Care Credit ($)

Education Credits ($)

Other Credits ($)

Tax Calculation Results

Total Income: $0.00

Adjusted Gross Income (AGI): $0.00

Taxable Income: $0.00

            Total Tax Liability:
            $0.00
          

Effective Tax Rate: 0%

Tax Breakdown

Income Tax: $0.00

Tax Credits: $0.00

Marginal Tax Rate: 0% (Your tax rate on the last dollar you earned)

Understanding Federal Income Tax

How Federal Income Tax Works

The federal income tax is a progressive tax system where higher income levels are taxed at higher rates. Understanding how tax brackets work is key to managing your tax liability effectively.

Tax Brackets and Marginal Tax Rates

The U.S. tax system uses marginal tax rates, which means you pay different rates on different portions of your income. For example, in 2023, a single filer pays 10% on the first $11,000 of taxable income, 12% on income from $11,001 to $44,725, and so on.

Deductions and Credits

Deductions reduce your taxable income, while credits directly reduce your tax liability. Understanding the difference can help you maximize your tax savings.

Filing Statuses

Your filing status (single, married filing jointly, married filing separately, or head of household) affects your tax bracket thresholds, standard deduction amount, and eligibility for certain credits.

Using Our Tax Calculator

Our tax calculator provides an estimate of your federal income tax liability based on your inputs. For the most accurate results, have your income information, deduction details, and any tax credits ready before using the calculator.

Frequently Asked Questions About Income Tax

What's the difference between a tax deduction and a tax credit?

A tax deduction reduces your taxable income, while a tax credit directly reduces your tax liability. Credits are generally more valuable because they provide a dollar-for-dollar reduction in your taxes owed.

Should I take the standard deduction or itemize?

You should itemize deductions if your total itemized deductions exceed the standard deduction for your filing status. Common itemized deductions include mortgage interest, state and local taxes, charitable contributions, and medical expenses above a certain threshold.

How do tax brackets work?

The U.S. uses a progressive tax system with marginal tax brackets. This means that different portions of your income are taxed at different rates. Moving into a higher tax bracket only affects the portion of income that falls within that bracket, not all of your income.