Federal vs. Marginal vs. Effective Tax Rate
The U.S. federal income tax is progressive — different portions of your income are taxed at different rates, with the rate increasing as income rises. Your marginal rate is the rate applied to your last (highest) dollar of income — it's the rate that applies to a raise or extra income. Your effective rate is your total tax divided by your total income — a blended average across all the brackets your income passed through. The effective rate is always lower than the marginal rate for anyone in more than the lowest bracket, which is why "I'm in the 22% bracket" doesn't mean 22% of your whole paycheck goes to federal tax.
The Standard Deduction
Before your income is taxed, the IRS lets you subtract a standard deduction — a flat amount based on your filing status that reduces your taxable income. For 2026, the standard deduction is $16,100 for single filers, $32,200 for married couples filing jointly, and $24,150 for head of household. Most filers take the standard deduction because it's simpler and larger than their itemizable expenses; itemizing (mortgage interest, charitable donations, certain medical expenses, state and local taxes up to the SALT cap) only makes sense if those itemized expenses exceed the standard deduction.
How State Income Tax Fits In
State income tax is calculated separately from federal tax and varies enormously: nine states have no income tax on wages at all, fifteen apply one flat rate to all income, and the rest use their own graduated bracket systems. This calculator applies a simplified set of single-filer brackets for each state directly to your gross income (without modeling each state's own standard deduction or credits), so treat the state figure as a rough estimate — for an exact number, your state's department of revenue or a tax professional can confirm based on your specific situation.
What This Calculator Doesn't Include
This tool estimates income tax only — it doesn't include FICA (Social Security and Medicare) taxes, which apply separately to wage income regardless of deductions (see our Paycheck Calculator for a full take-home-pay breakdown including FICA). It also doesn't account for tax credits (Child Tax Credit, Earned Income Tax Credit, education credits, etc.), which directly reduce your tax bill dollar-for-dollar and can be significant for many households — so your actual tax owed may be lower than the estimate shown here.