Income Tax Calculator USA

Take whichever is larger. The 2026 standard deduction is roughly $15,000 (single) / $30,000 (MFJ). Itemize only if your combined SALT (capped at $10k) + mortgage interest + charitable giving exceeds the standard. Since TCJA in 2017 capped SALT, only ~10% of filers itemize. This calculator lets you input itemized deductions; if they total less than the standard, you should take the standard.

The State and Local Tax (SALT) deduction is capped at $10,000 for state income tax + property tax + sales tax combined. This was introduced in the 2017 TCJA. Before TCJA there was no cap, so itemizing was much more common for residents of high-tax states like CA, NY, NJ.

No — only federal. State income tax varies enormously (0% in TX/FL/WA/NV, up to 13.3% in CA). For a full picture, lookup your state's brackets separately. Your state tax is also potentially included in the $10,000 SALT cap as an itemized deduction on your federal return — so high earners in CA effectively can't fully deduct their state tax.

0.9% Additional Medicare Tax applies to wages above $200,000 (single) or $250,000 (married filing jointly). Unlike regular Medicare (1.45%), this is paid only by the employee — employers don't match it. It's separate from the 3.8% Net Investment Income Tax on investment income above those same thresholds.

Marginal rate = the tax rate on your NEXT dollar of income. If you're in the 22% bracket, $100 more income costs $22 in tax. Effective rate = total tax / total income. Because of progressive brackets and the standard deduction, your effective rate is always lower than your marginal rate. Someone in the 22% bracket might have an 11% effective rate.

Traditional 401(k) contributions (up to $23,500 in 2026, plus $7,500 catch-up if 50+) reduce your federal taxable income dollar-for-dollar. They do NOT reduce FICA. On $85k income contributing $10k, you save approximately $10k × 22% marginal = $2,200 in federal tax. Roth 401(k) contributions don't reduce current tax but grow tax-free.

Credits (CTC, EITC, Saver's Credit, AOTC) reduce your tax dollar-for-dollar — much more powerful than deductions. The Child Tax Credit is up to $2,000 per qualifying child under 17 (partially refundable). This calculator focuses on deductions; credits would further reduce the total tax shown.

No — long-term capital gains (assets held >1 year) and qualified dividends have their own brackets: 0%, 15%, or 20% (single thresholds 2026 ~$48,475 / $533,400). Short-term gains (≤1 year) are taxed as ordinary income at these rates. This calculator treats all income as ordinary; we'll build a separate capital gains calculator.