US Federal Tax Calculator

The Progressive Bracket System

The United States uses a progressive tax system. This means that as your income rises, you move into higher tax brackets, but—and this is a critical misconception—your entire income is not taxed at the highest rate.

Example (Single in 2024): If you earn $100,000, your highest ("marginal") tax bracket is 22%. However, you don't pay 22% on the full $100k.
Instead, you pay 10% on the first $11,600, then 12% on the amount from $11,601 to $47,150, and only pay 22% on the remaining chunk above $47,150.

This is why your Effective Tax Rate (the actual percentage of your total income paid in taxes, displayed above) is much lower than your top Marginal Bracket.

Standard vs. Itemized Deductions

Before computing tax via the brackets, you are allowed to subtract a "Standard Deduction" from your Gross Income entirely tax-free. For 2024, these are the inflation-adjusted amounts:

• Single: $14,600
• Married Filing Jointly: $29,200
• Head of Household: $21,900

If you have specific large expenses (like major medical bills not covered by insurance, large charitable donations, or heavy mortgage interest), you can choose to "Itemize" instead of taking the standard deduction, but you can only choose one method.

FICA Taxes (The Hidden Cost)

Your Federal Income Tax is not the only thing deducted from your paycheck. The federal government also mandates payroll taxes collectively known as FICA (Federal Insurance Contributions Act):

• Social Security: 6.2% of your gross income, up to the wage base limit of $168,600 (for 2024). Any income above this cap is not taxed for Social Security.
• Medicare: 1.45% of your gross income, with no upper limit. (High earners pay an additional 0.9% surtax, which our calculator factors in).

Self-Employed Note: If you are a W-2 employee, your employer pays an identical matching half of FICA. If you are a 1099 independent contractor, you must pay both halves (15.3% total) known as the "Self-Employment Tax."