Tax Calculator

A tax calculator helps you estimate your income tax liability and understand how much of your income goes to taxes. This tax calculator shows your federal tax, state tax, FICA taxes, and calculates both your effective tax rate and marginal tax rate. Use this tax calculator for financial planning and budgeting.

Key tax calculator concepts:

• Marginal Tax Rate: The rate you pay on your last dollar of income. This is your tax bracket and determines how much tax you'll pay on additional income.
• Effective Tax Rate: Your total tax divided by your total income. This represents the average rate you pay on all your income and is always lower than your marginal rate.
• FICA Taxes: Social Security (6.2% up to $160,200) and Medicare (1.45% on all income, plus 0.9% additional Medicare tax on high earners).
• Standard Deduction: The amount you can deduct from your income before calculating taxes. For 2024: $14,600 (single), $29,200 (married filing jointly).
• Progressive Tax System: The U.S. uses a progressive tax system where higher income is taxed at higher rates, but only the income in each bracket is taxed at that bracket's rate.

Using this tax calculator: Enter your annual income, select your filing status, choose your state, and add any pre-tax deductions like 401(k) contributions. The tax calculator will show you exactly how much you'll pay in taxes and what your take-home pay will be. This tax calculator helps you understand the difference between marginal and effective tax rates and plan ways to reduce your taxable income through pre-tax deductions.