📋 Income Tax Calculator
Estimate your federal income tax liability, FICA taxes, state taxes, and take-home pay. Calculate your effective tax rate and see a detailed breakdown of where your tax dollars go.
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Frequently Asked Questions
How is federal income tax calculated?
Federal income tax uses a progressive tax bracket system. Your income is taxed at different rates as it crosses each bracket threshold. For 2024, single filers pay 10% on income up to $11,600, 12% on income from $11,600 to $47,150, and so on up to 37% for income over $609,350.
What is the difference between marginal and effective tax rate?
Your marginal tax rate is the rate you pay on your last dollar of income (highest bracket). Your effective tax rate is your total tax divided by your total income - essentially your average tax rate. The effective rate is always lower than your marginal rate due to the progressive system.
What counts as a tax deduction?
Tax deductions reduce your taxable income. Common deductions include the standard deduction ($14,600 single, $29,200 married filing jointly for 2024), mortgage interest, charitable contributions, state and local taxes (SALT, up to $10,000), and business expenses for self-employed individuals.
What is FICA tax and who pays it?
FICA (Federal Insurance Contributions Act) includes Social Security (6.2% up to $168,600 wage base) and Medicare (1.45% with no limit, plus 0.9% additional on income over $200,000 for single filers). Both employees and employers pay FICA. Self-employed individuals pay both portions (15.3%) but can deduct half as a business expense.
Should I take the standard deduction or itemize?
Take the standard deduction if your itemizable deductions (mortgage interest, charitable gifts, medical expenses, state taxes) are less than $14,600 (single) or $29,200 (married filing jointly) for 2024. About 90% of taxpayers take the standard deduction since the 2017 Tax Cuts and Jobs Act nearly doubled the standard deduction amounts.
Financial Disclaimer
This calculator is provided for educational and informational purposes only. The results are estimates based on the information you provide and should not be considered as financial, legal, or tax advice.
Actual results may vary based on your specific circumstances, market conditions, and other factors. Always consult with qualified financial, legal, and tax professionals before making any financial decisions.
We make no guarantees about the accuracy, completeness, or reliability of the calculations. Use this tool at your own risk.