Income Tax Estimator

How US Federal Income Tax Works

The United States uses a progressive tax system, which means different portions of your income are taxed at different rates. Contrary to a common misconception, earning more money does not cause all of your income to be taxed at a higher rate — only the income within each bracket is taxed at that bracket's rate. This is the fundamental concept behind marginal vs. effective tax rates.

This estimator applies the 2024 federal income tax brackets, subtracts the standard deduction for your filing status, and then calculates the tax owed bracket by bracket to produce an accurate estimate of your federal income tax liability.

Understanding Marginal vs. Effective Tax Rate

Marginal Tax Rate

Your marginal tax rate is the rate applied to the last dollar you earned — the highest bracket your income reaches. For a single filer with $75,000 in taxable income in 2024, the marginal rate is 22% (the bracket covering $47,150 to $100,525). But not all income is taxed at 22%; only the portion above $47,150 is.

Effective Tax Rate

Your effective tax rate is the average rate you actually pay — total tax divided by total gross income. It's almost always lower than your marginal rate because income in lower brackets is taxed at lower rates. On a $75,000 income, an effective rate of around 13–14% is common for single filers — significantly lower than the 22% marginal rate.

2024 US Federal Tax Brackets

For single filers in 2024, the standard deduction is $14,600. Brackets after deduction: 10% on income up to $11,600; 12% on $11,601–$47,150; 22% on $47,151–$100,525; 24% on $100,526–$191,950; 32% on $191,951–$243,725; 35% on $243,726–$609,350; 37% above $609,350.

For married filing jointly, the standard deduction is $29,200, and the brackets are exactly double the single-filer amounts at each level. The head of household status offers a $21,900 standard deduction with intermediate bracket widths, providing more favorable tax treatment than single for qualifying taxpayers with dependents.

What This Calculator Does Not Include

This is a federal income tax estimator only. Your total tax burden includes additional items not reflected here:

• State income tax: Ranges from 0% (nine states have no income tax) to over 13% in California
• FICA taxes: Social Security (6.2% up to $168,600 in 2024) and Medicare (1.45%, plus 0.9% on income above $200,000)
• Tax credits: Child Tax Credit, Earned Income Tax Credit, education credits, and others can significantly reduce your actual tax bill
• Itemized deductions: Mortgage interest, charitable donations, and medical expenses may exceed the standard deduction for some taxpayers

For accurate tax planning, consult a qualified tax professional or use official IRS resources. This tool is for educational estimation only.