Tax Calculator
Estimate your federal and state income tax for 2026. Supports all filing statuses and all 50 US states.
Your tax filing status affects your brackets and deductions
Your total gross income before taxes
Freelance income, investments, side jobs
401(k), HSA, FSA contributions
How to Use This Tax Calculator
Our free tax calculator helps you estimate your federal and state income tax liability for the 2026 tax year. Enter your income details and filing status to see your estimated tax burden, effective tax rate, and take-home pay.
How federal tax brackets work
The US uses a progressive tax system with marginal brackets. This means each bracket rate applies only to income within that range — not your entire income. For example, if you're single with $60,000 in taxable income:
- First $11,925 taxed at 10% = $1,192.50
- $11,926 to $48,475 taxed at 12% = $4,386.00
- $48,476 to $60,000 taxed at 22% = $2,535.50
- Total federal tax: $8,114.00 (effective rate: 13.5%)
Understanding your tax bracket vs effective rate
Your marginal tax rate is the rate on your last dollar of income (your highest bracket). Your effective tax rate is the average rate across all your income. The effective rate is always lower than the marginal rate, which is a common source of confusion.
State tax differences
State income taxes vary significantly across the US:
- No income tax: AK, FL, NV, NH, SD, TN, TX, WA, WY
- Flat tax: CO (4.4%), IL (4.95%), IN (3.05%), MI (4.25%), NC (4.5%), PA (3.07%), UT (4.65%)
- Progressive tax: CA, NY, NJ, and most other states use brackets similar to federal
How to reduce your tax bill
- Maximize 401(k) contributions — $23,500 limit for 2026 ($31,000 if 50+)
- Contribute to an HSA — Triple tax advantage for health expenses
- Harvest tax losses — Offset capital gains with investment losses
- Claim all credits — Child Tax Credit, Earned Income Credit, education credits
- Itemize if beneficial — When deductions exceed the standard deduction
Frequently Asked Questions
How do federal tax brackets work?
Federal tax brackets are marginal — each bracket rate applies only to income within that range. For example, if you're single with $60,000 taxable income, the first $11,925 is taxed at 10%, the next $36,550 at 12%, and the remaining $11,525 at 22%. Your effective rate is lower than 22%.
What is the standard deduction for 2026?
For 2026, the standard deduction is $15,000 for Single and Married Filing Separately, $30,000 for Married Filing Jointly, and $22,500 for Head of Household. These amounts are adjusted annually for inflation.
Which states have no income tax?
Nine states have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Note that New Hampshire taxes dividends and interest income only.
What is the difference between marginal and effective tax rate?
Your marginal tax rate is the rate on your last dollar of income (your highest bracket). Your effective tax rate is the average rate you pay on all your income combined, which is always lower than your marginal rate because of the progressive bracket system.
How can I reduce my tax bill?
Common strategies include: contributing to a 401(k) or IRA (reduces taxable income), using an HSA for medical expenses (triple tax advantage), claiming all eligible deductions and credits, harvesting tax losses on investments, and itemizing deductions when they exceed the standard deduction.
Should I take the standard deduction or itemize?
Take whichever is higher. After the 2017 tax law changes, about 90% of taxpayers now take the standard deduction. Itemize if your mortgage interest, state/local taxes (up to $10,000 SALT cap), and charitable donations exceed the standard deduction for your filing status.