🧾 Income Tax & Take-Home Calculator
Estimate US federal income tax for the 2025 tax year using the real bracket table, with the standard deduction applied. Shows the tax due in each bracket, your marginal rate and your effective rate.
How US federal income tax is actually calculated
The most common misunderstanding about income tax is that moving into a higher bracket taxes all of your income at the higher rate. It does not. Brackets are marginal: each slice of income is taxed at its own rate, and only the part above a threshold is taxed at the rate for that band. A pay rise can never leave you worse off through brackets alone.
The calculator above applies the 2025 federal bracket table slice by slice and shows the tax due in each band, so you can see where every dollar goes.
The 2025 brackets
| Rate | Single | Married filing jointly | Head of household |
|---|---|---|---|
| 10% | $0 – $11,925 | $0 – $23,850 | $0 – $17,000 |
| 12% | $11,925 – $48,475 | $23,850 – $96,950 | $17,000 – $64,850 |
| 22% | $48,475 – $103,350 | $96,950 – $206,700 | $64,850 – $103,350 |
| 24% | $103,350 – $197,300 | $206,700 – $394,600 | $103,350 – $197,300 |
| 32% | $197,300 – $250,525 | $394,600 – $501,050 | $197,300 – $250,500 |
| 35% | $250,525 – $626,350 | $501,050 – $751,600 | $250,500 – $626,350 |
| 37% | above $626,350 | above $751,600 | above $626,350 |
The 2025 standard deduction is $15,750 for single filers, $31,500 for married filing jointly and $23,625 for head of household. Those figures were raised by the One Big Beautiful Bill Act signed in July 2025. Sources: Tax Foundation, 2025 tax brackets and the National Taxpayers Union Foundation.
Worked example: $85,000, single
Start with gross income of $85,000 and subtract the standard deduction of $15,750, giving taxable income of $69,250. Then fill the brackets from the bottom:
| Band | Income taxed in band | Rate | Tax |
|---|---|---|---|
| First band | $11,925 | 10% | $1,192.50 |
| Second band | $36,550 | 12% | $4,386.00 |
| Third band | $20,775 | 22% | $4,570.50 |
| Total | $69,250 | — | $10,149.00 |
The marginal rate is 22%, because the next dollar earned would be taxed at 22%. The effective rate is $10,149 / $85,000 = 11.94% of gross income. Those two numbers get confused constantly, and the gap between them is why nobody actually pays their bracket rate on their whole income.
Marginal versus effective, across incomes
| Gross income | Taxable | Federal tax | Marginal | Effective |
|---|---|---|---|---|
| $40,000 | $24,250 | $2,671 | 12% | 6.7% |
| $60,000 | $44,250 | $5,071 | 12% | 8.5% |
| $85,000 | $69,250 | $10,149 | 22% | 11.9% |
| $120,000 | $104,250 | $18,039 | 24% | 15.0% |
| $180,000 | $164,250 | $32,439 | 24% | 18.0% |
| $250,000 | $234,250 | $52,023 | 32% | 20.8% |
What this calculator does not include
- FICA. Social Security at 6.2% up to the annual wage base plus Medicare at 1.45% with no cap, and an extra 0.9% Medicare surtax above $200,000 for single filers. For most middle incomes this is a larger bite than it looks.
- State and local income tax. Ranges from nothing in nine states to over 13% at the top in California.
- Credits. The Child Tax Credit, Earned Income Tax Credit and education credits reduce tax dollar for dollar, which is far more valuable than a deduction of the same size.
- Capital gains and dividends. Taxed at separate preferential rates of 0%, 15% or 20% rather than at ordinary income rates.
- Pre-tax contributions. 401(k), traditional IRA and HSA contributions reduce taxable income before brackets are applied.
This is an estimate of federal income tax only, for the 2025 tax year, for the three filing statuses shown. It is not tax advice and should not be used to file. For anything with real money attached, check against IRS publications or a qualified preparer.
Deductions versus credits
A deduction reduces the income that gets taxed; a credit reduces the tax itself. A $2,000 deduction saves a 22% bracket taxpayer $440. A $2,000 credit saves them $2,000. That is why credits are rationed and deductions are not, and why chasing deductions is often less valuable than people assume.
Frequently Asked Questions (FAQs)
Will a pay rise push me into a higher bracket and cost me money?
No. Only the income above the threshold is taxed at the higher rate, so more gross income always means more net income from brackets alone. The exception involves credits and benefits that phase out at income thresholds, which can create a genuine cliff, but the bracket system itself never does.
What is the difference between marginal and effective tax rate?
The marginal rate applies to your next dollar of income; the effective rate is total tax divided by total income. A single filer on $85,000 has a 22% marginal rate and an 11.9% effective rate. Use the marginal rate for decisions about extra income or deductions, and the effective rate to understand your overall burden.
Should I take the standard deduction or itemise?
Take whichever is larger. Since the standard deduction rose sharply, the large majority of filers take it. Itemising usually only wins with a substantial mortgage, large charitable giving, or high state and local taxes, and the SALT deduction is capped.
Does this include Social Security and Medicare?
No. FICA is separate from income tax: 6.2% for Social Security up to the wage base and 1.45% for Medicare on everything, with the employer matching both. Self-employed people pay both halves. Add roughly 7.65% of wages to get a fuller picture of payroll withholding.
How do 401(k) contributions change my tax?
Traditional contributions come out before income tax, so they reduce taxable income directly. Contributing $8,000 while in the 22% bracket cuts federal tax by about $1,760. Roth contributions do not reduce tax now but come out untaxed in retirement.
Which tax year does this use?
The 2025 tax year, filed in early 2026. Brackets and the standard deduction are adjusted for inflation each year, so figures for other years will differ. Always confirm the current table on the IRS website before relying on any calculator, including this one.
Why is my paycheck withholding different from this result?
Withholding is an estimate your employer makes from your W-4, annualised from each pay period. It rarely lands exactly on your actual liability, which is why refunds and balances due exist. Bonuses are often withheld at a flat supplemental rate that is higher than your marginal rate.