How is income tax calculated?

Income tax is calculated using progressive tax brackets. Each portion of your income is taxed at the rate for that bracket, not your entire income at a single rate. This means your effective tax rate is always lower than your top marginal rate.

What is the difference between marginal and effective tax rate?

Your marginal tax rate is the rate applied to your last dollar of income (your highest bracket). Your effective tax rate is the average rate you pay on all your income — total tax divided by total income. The effective rate is always lower.

What are the 2026 US federal tax brackets?

For 2026, US federal tax brackets range from 10% on income up to $11,925 to 37% on income over $609,350 for single filers. These brackets are adjusted annually for inflation.

Does this calculator include state or local taxes?

This calculator estimates federal/national income tax only. State, provincial, or local taxes vary by jurisdiction and are not included. Your actual total tax burden may be higher.

Income Tax Calculator 2026

Estimate your income tax, effective tax rate, and take-home pay.
Select your country and enter your annual income.

Tax Settings

Country / Region

Filing Status

Annual Gross Income

Deductions

Standard/personal deduction is applied automatically if left at 0.

Enter Your Income

Select your country and enter your annual income
to see your estimated tax breakdown.

Income Tax Calculator 2026

Tax Settings

Enter Your Income

$0

$0

Tax Bracket Breakdown

Progressive Tax System

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