Results are estimates for educational purposes only. Based on 2026 IRS federal brackets and state tax rates. Individual circumstances may affect your actual tax liability. Always consult a qualified tax professional.
How US federal income tax works in 2026
The United States uses a progressive tax system — meaning you pay different rates on different portions of your income. A common misconception is that moving into a higher bracket means all your income is taxed at that higher rate. That is not how it works.
Think of it like filling buckets. The first $11,925 of your taxable income fills the 10% bucket. The next portion fills the 12% bucket, and so on. Only the income that spills into each bucket is taxed at that rate.
2026 federal income tax brackets (single filers)
Tax rate
Income range
Tax on this portion
10%
$0 — $11,925
Up to $1,193
12%
$11,926 — $48,475
Up to $4,386
22%
$48,476 — $103,350
Up to $12,075
24%
$103,351 — $197,300
Up to $22,548
32%
$197,301 — $243,725
Up to $14,870
35%
$243,726 — $609,350
Up to $127,996
37%
Over $609,350
37 cents per dollar
The 2026 standard deduction is $15,000 for single filers and $30,000 for married filing jointly. This amount is subtracted from your gross income before calculating your tax, meaning most people only pay tax on their income above these thresholds.
What else comes out of your paycheck?
Federal income tax is not the only deduction. Your paycheck also includes FICA taxes — Social Security and Medicare — which are separate from income tax and apply to almost all workers:
Social Security: 6.2% on wages up to $168,600 (2026 wage base)
Medicare: 1.45% on all wages (no cap)
Additional Medicare tax: 0.9% on wages over $200,000 (single) or $250,000 (married)
Your employer also pays matching Social Security and Medicare contributions — but those come from the business, not your paycheck.
State income tax varies significantly
On top of federal taxes, most states levy their own income tax. Nine states have no state income tax at all: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.
Among states that do tax income, rates range from under 3% (North Dakota) to over 13% (California's top rate). Our calculator applies the correct 2026 rate for your selected state automatically.
How to reduce your tax bill legally
401k contributions: Every dollar you contribute reduces your taxable income by one dollar. At a 22% bracket, a $5,000 contribution saves $1,100 in federal tax alone.
HSA contributions: Health Savings Account contributions are pre-tax and reduce your taxable income.
IRA contributions: Traditional IRA contributions (up to $7,000 in 2026) may be deductible depending on your income and workplace retirement plan.
Itemized deductions: If your mortgage interest, charitable donations, and state taxes exceed the standard deduction, itemizing may save you more.
Frequently asked questions
The IRS adjusts tax brackets annually for inflation. In 2026, the standard deduction increased to $15,000 for single filers (from $14,600 in 2025), and all bracket thresholds were adjusted slightly upward. This means most people pay slightly less tax on the same income compared to 2025.
Yes. Our calculator includes federal income tax, state income tax, Social Security (6.2% up to $168,600), and Medicare (1.45% on all wages). The breakdown shows each deduction separately so you can see exactly where your money goes.
Your marginal tax rate is the rate applied to your last dollar of income — the bracket you fall into. Your effective tax rate is the average rate across all your income. If you earn $75,000 in California as a single filer, your marginal federal rate is 22%, but your effective federal rate is around 16.8% because lower portions of your income were taxed at 10% and 12%.
Married filing jointly doubles most bracket thresholds and gives you a $30,000 standard deduction (vs $15,000 single). This generally results in lower combined taxes for most married couples, especially when one spouse earns significantly more than the other.
Our calculator uses standard formulas and does not account for individual factors that vary by person: employer-sponsored health insurance premiums, flexible spending accounts, wage garnishments, local city taxes (like New York City), or non-standard withholding elections on your W-4. The result is an accurate estimate — but your actual paycheck may vary by a small amount.