Income Tax Calculator
Use this income tax calculator to estimate income tax, understand your taxable income, and see how deductions and tax credits can change your final bill. It’s designed for practical, global estimates using a transparent progressive bracket model—helpful for planning and quick comparisons.
You’ll get an estimate of effective tax rate, marginal tax rate impact via bracket-by-bracket math, and net income after tax. For exploring related tools, see Tax Calculators or browse Finance Calculators. You can also jump to All Calculators any time.
Estimate income tax in seconds
Enter your income and adjustments below. Results will appear beneath the form with a detailed, bracket-by-bracket breakdown.
Results
Review your estimated income tax, rates, and net income after tax.
How it works
This income tax calculator uses a simplified progressive bracket system. Your taxable income is computed first, then each portion is taxed at its marginal tax rate. Finally, tax credits reduce the computed tax. The calculator never produces negative tax.
Taxable Income
Taxable Income = max(0, Gross + Other − Pre-tax Deductions − Other Deductions)
Estimated Income Tax
Estimated Tax = max(0, BracketTax(Taxable Income) − Credits)
Effective Tax Rate
Effective Rate = Estimated Tax ÷ (Gross + Other) × 100
Refund / Amount Owed
Refund/Owed = Withholding − Estimated Tax
The bracket model (transparent estimate)
The calculator defines 5 brackets. Filing status adjusts bracket thresholds using status-specific tables. These values are deliberately simplified and do not represent any country’s official schedule. The goal is clarity: you can see exactly how each bracket portion is taxed.
Filing Status
Brackets (threshold → rate)
Single
0→10%, 20k→12%, 50k→22%, 100k→28%, 200k→35%
Married Filing Jointly
0→10%, 40k→12%, 100k→22%, 200k→28%, 400k→35%
Married Filing Separately
0→10%, 20k→12%, 50k→22%, 100k→28%, 200k→35%
Head of Household
0→10%, 30k→12%, 75k→22%, 150k→28%, 300k→35%
Live substituted example (from your last calculation)
Run a calculation to see your substituted values here (taxable income formula + bracket math summary).
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Use cases
Plan for a raise or job change
Compare how a higher salary shifts marginal tax rate portions and changes your effective tax rate.
Model a bonus year
Add bonuses to gross income and see the estimated difference in income tax liability.
Test deductions planning
Adjust pre-tax deductions and other deductions to see the impact on taxable income.
Check withholding vs tax liability
Use the withholding field to estimate whether you’re trending toward a refund or amount owed.
Track side income
Add other taxable income for side gigs and see how it affects net income after tax.
Examples (worked)
Example 1: Single filer with modest deductions
Inputs: Gross 75,000; Other 0; Pre-tax 3,000; Other deductions 2,000; Credits 500; Withholding 12,000.
Taxable = 75,000 + 0 − 3,000 − 2,000 = 70,000
Brackets (Single):
0–20,000 @10% = 2,000
20,000–50,000 (30,000) @12% = 3,600
50,000–70,000 (20,000) @22% = 4,400
Bracket tax = 10,000
Final tax = max(0, 10,000 − 500) = 9,500
Refund/Owed = 12,000 − 9,500 = +2,500 (refund)
Example 2: Married filing jointly with credits
Inputs: Gross 140,000; Other 5,000; Pre-tax 10,000; Other deductions 7,000; Credits 2,000; Withholding 25,000.
Total income = 145,000
Taxable = 145,000 − 10,000 − 7,000 = 128,000
Brackets (MFJ):
0–40,000 @10% = 4,000
40,000–100,000 (60,000) @12% = 7,200
100,000–128,000 (28,000) @22% = 6,160
Bracket tax = 17,360
Final tax = max(0, 17,360 − 2,000) = 15,360
Refund/Owed = 25,000 − 15,360 = +9,640 (refund)
Example 3: Head of household with side income and withholding check
Inputs: Gross 95,000; Other 12,000; Pre-tax 5,000; Other deductions 8,000; Credits 1,200; Withholding 18,000.
Total income = 107,000
Taxable = 107,000 − 5,000 − 8,000 = 94,000
Brackets (HoH):
0–30,000 @10% = 3,000
30,000–75,000 (45,000) @12% = 5,400
75,000–94,000 (19,000) @22% = 4,180
Bracket tax = 12,580
Final tax = max(0, 12,580 − 1,200) = 11,380
Refund/Owed = 18,000 − 11,380 = +6,620 (refund)
Common Mistakes
- Confusing gross income with taxable income (deductions change the base).
- Assuming the marginal tax rate applies to all income instead of only the top portion.
- Entering credits as deductions (credits reduce tax, deductions reduce taxable income).
- Forgetting to include other taxable income like side work or taxable interest.
- Using withholding as “tax” without comparing it to estimated liability (refund/owed depends on both).
Quick Tips
- Use pre-tax deductions to test how retirement contributions can lower taxable income.
- Run scenarios for different filing statuses if your situation changes (marriage, dependents, etc.).
- Compare effective tax rate to understand total burden, not just bracket rates.
- Check withholding quarterly to reduce surprises at filing time.
- Keep credits realistic; this tool caps final tax at zero but credits don’t create negative tax here.
Frequently Asked Questions
What does this income tax calculator actually estimate?
This tool estimates your income tax using a simplified progressive bracket model. It calculates taxable income by subtracting deductions from your total income (gross plus other taxable income). Then it taxes portions of that taxable income at increasing marginal rates. Finally, tax credits reduce the computed tax. The output helps you approximate your effective tax rate, your after-tax income, and whether your withholding points to a refund or an amount owed. It’s not an official engine, but it’s designed to be transparent and useful for planning.
What is the difference between taxable income and gross income?
Gross income is your total income before adjustments. Taxable income is the portion used to compute estimated income tax after subtracting deductions. In this calculator, taxable income is gross income plus other taxable income, minus pre-tax deductions and other deductions, with a floor at zero. This matters because tax brackets apply to taxable income, not necessarily to every unit of gross income. If you want to estimate income tax accurately, you should enter realistic deductions so the taxable income figure resembles what you expect to report under your rules.
How do marginal tax rate and effective tax rate differ?
Your marginal tax rate is the rate applied to the last (top) portion of your taxable income under a progressive bracket system. It does not mean all your income is taxed at that rate. Your effective tax rate is the total estimated income tax divided by your total income (gross plus other taxable income), shown as a percentage. Effective rate is usually lower than your top marginal rate because earlier portions are taxed at lower bracket rates, and credits can reduce the final tax. The calculator shows both concepts through bracket math and the effective-rate gauge.
Do deductions reduce tax the same way credits do?
No. Deductions reduce taxable income, which can lower the amount of income taxed in higher brackets and reduce the bracket-by-bracket tax. Credits reduce the tax after it is computed. That’s why credits can have a more direct impact on the final estimated income tax. This income tax calculator applies deductions first (to compute taxable income) and then applies credits at the end. If credits exceed computed tax, the calculator sets final tax to zero and notes that credits cannot make the tax negative in this model.
Why does filing status change the estimate?
Filing status often changes bracket thresholds in real tax systems, and it also influences how the same taxable income is segmented across marginal rates. This calculator uses status-specific threshold tables (Single, Married Filing Jointly, Married Filing Separately, and Head of Household). That means the same taxable income can produce a different estimated income tax depending on status because different portions fall into different bracket ranges. While the values here are simplified and not official, they help you compare scenarios and understand how thresholds influence effective tax rate outcomes.
How does withholding relate to refund versus amount owed?
Withholding is what you’ve already paid in during the year through payroll or other payments. Your tax liability is the estimated income tax computed from taxable income and credits. This calculator compares the two: refund/owed equals withholding minus estimated tax. If the result is positive, it indicates a potential refund; if negative, it indicates you may owe more. This is why “withholding vs tax liability” is a useful planning check. Keep in mind that timing, additional taxes, and official rules can change final outcomes.
Does pay frequency change the estimated income tax?
In this calculator, pay frequency does not change the tax math because the estimate is based on annual totals and bracket thresholds. Pay frequency is used only for display—so you can view an approximate per-pay-period breakdown of after-tax income and estimated tax. This is helpful if you budget weekly, biweekly, or monthly. For accurate planning, make sure your annual gross income and other taxable income reflect expected totals. If your income varies (bonuses, commissions), try running multiple scenarios to understand effective rate changes.
How should I use this tool if my income changes during the year?
If your income changes, run multiple estimates. For example, calculate using your current annualized income, then run a second scenario with projected year-end totals that include bonuses, raises, or reduced hours. Track how taxable income moves across brackets and observe changes in effective tax rate. You can also model different deduction levels, such as increasing pre-tax deductions, to see how much taxable income declines. If you are checking withholding, update the taxes already paid field to reflect the latest totals to estimate whether you are trending toward refund or amount owed.
Sources & References
- Local tax authority guidance (varies by country/region).
- General progressive tax concepts (marginal vs effective rate).
- Common withholding vs tax liability budgeting practices.