🇺🇸 Federal Income Tax Calculator
Calculate your federal, state & local income taxes
Updated for 2022 tax year on Oct 31 2022
Income tax calculators by state
United States federal income tax calculation
Benjamin Franklin once said: In this world nothing can be said to be certain, except death and taxes
. All residents and citizens in the USA are subjected to income taxes. This includes investments, oversea incomes, etc. If you don’t report and pay your tax properly, it is considered tax evasion and it is a criminal offence.
A federal tax year is a 12-months period beginning October 01 and ending September 30 the following year. For example, the tax year 2022 will starts on Oct 01 2021, and end on Sep 30 2022. The state tax year is also a 12-months period but each state sets their own tax year. Some states follow the federal tax year, some states start on July 01 and end on Jun 30.
Federal income tax is progressive. This means higher earners will have a higher marginal tax rate while lower earners have a lower marginal tax rate. Some states have progressive income tax rates and some states tax at a single rate on all income levels. 8 states don’t have income tax and 1 state (New Hampshire) has no wage income tax. Some counties/cities/districts also have a local income tax but it is not as common. Income tax calculation rests on the taxable income, which is worked out after deductions and exemptions.
Besides income tax, you also have to calculate the payroll taxes. The federal payroll tax is called Federal Insurance Contributions Act (FICA) and it is made up of two separate taxes. Only some states have payroll taxes. As the name implies, this tax is based on your taxable wage.
How to calculate your income taxes
There are six key steps to determine your total income tax. The income tax calculator above follow the exact steps mentioned below.
Step 1 – Determine your filing status
There are 4 main filing statuses:
- Single
- Married, Filing Jointly or Widow(er)
- Married, Filing Separately
- Head of Household
Your marital status and whether you have any dependents will determine your filing status.
For example, if you are single and have a child, you should file as ‘Head of Household’.
If you are married but preferred to file separately from your partner (highly inadvisable), then you will file as ‘Married, Filing Separately’.
Refer to IRS to understand more.
Step 2 – Figure out your adjusted gross income
In this step, you need to work out your adjusted gross income by removing retirement contributions from your total annual gross income. Contributions 401(k) and IRA are considered retirement contributions.
The formula is:
Gross income − Retirement contributions = Adjusted gross income
The more you contribute to your retirement funds, the lower your adjusted gross income will be and it leads to lesser income tax. However, there is a limit on how much you can contribute to your 401(k) and IRA.
The maximum employee 401(k) contribution limit for tax year 2022 is $20,500. If you are age 50 or older, you can contribute an additional $6,500. For IRA contribution, the limit is $6,000 ($7,000 if you’re age 50 or older) for tax year 2022.
Step 3 – Calculate federal/state taxable income
Now you have to calculate your taxable income in order to understand your tax liability. You need to work out the taxable income for federal and state separately as their formulas are slightly different. The key differences are:
- Different standard deduction
- Some states still have personal exemptions (after Tax Cuts and Jobs Act)
The formula for calculating federal taxable income is:
Adjusted gross income − Standard/Itemized deductions = Federal taxable income
The formula to derive the state taxable income is:
Adjusted gross income − (Standard/Itemized deductions + Exemptions) = State taxable income
Step 4 – Federal/state/local tax liability
Similar to the previous step, you need to use the respective taxable income for federal and state. Local tax liability is based on state taxable income.
The formula to determine federal tax liability is:
Federal taxable income × Federal tax rate = Federal tax liability
The formula to calculate state tax liability is:
State taxable income × State tax rate = State tax liability
The formula to work out local tax liability is:
State taxable income × Local tax rate = Local tax liability
Step 5 – FICA & state payroll tax liability
Payroll tax is based on the taxable wage (gross income) hence the name. Unless income tax, each payroll tax has a gross income ceiling. FICA consists of two taxes: Social Security and Medicare.
The formula to calculate federal/state payroll tax liability is:
Gross income × FICA/State payroll tax rate = FICA/State payroll tax liability
Step 6 – Add all taxes
The final step is to subtract all the tax liabilities from your gross income.
The formula is:
Federal tax liability + State tax liability + Local tax liability + FICA tax liability + State payroll tax liability = Total income taxes
Federal Insurance Contributions Act (FICA)
FICA tax is made up of two mandatory payroll taxes: Social Security and Medicare. Each tax is equally split between employees and employers. Self-employed needs to pay the full amount.
Social Security
| Tax year | Employment status | Gross income | Rate |
|---|---|---|---|
| 2022 | Employer | Up to $147,000 | 6.20% |
| Employee | 6.20% | ||
| Self-employed | 12.40% | ||
| 2021 | Employer | Up to $142,800 | 6.20% |
| Employee | 6.20% | ||
| Self-employed | 12.40% | ||
| 2020 | Employer | Up to $137,700 | 6.20% |
| Employee | 6.20% | ||
| Self-employed | 12.40% |
Medicare
| Tax year | Employment status | Filing status | Gross income | Rate |
|---|---|---|---|---|
| 2022 2021 2020 |
Employer | Single & Head of Household | Up to $200,000 | 1.45% |
| Married Jointly | Up to $250,000 | |||
| Married Separately | Up to $125,000 | |||
| Single & Head of Household | $200,000 and over | 2.35% | ||
| Married Jointly | $250,000 and over | |||
| Married Separately | $125,000 and over | |||
| Employee | Single & Head of Household | Up to $200,000 | 1.45% | |
| Married Jointly | Up to $250,000 | |||
| Married Separately | Up to $125,000 | |||
| Single & Head of Household | $200,000 and over | 2.35% | ||
| Married Jointly | $250,000 and over | |||
| Married Separately | $125,000 and over | |||
| Self-employed | Single & Head of Household | Up to $200,000 | 2.90% | |
| Married Jointly | Up to $250,000 | |||
| Married Separately | Up to $125,000 | |||
| Single & Head of Household | $200,000 and over | 3.80% | ||
| Married Jointly | $250,000 and over | |||
| Married Separately | $125,000 and over |
Federal income tax brackets
The federal tax brackets are different every year as IRS adjusts it for inflation. For the latest on federal income tax brackets, refer to Tax Foundation.
Regards to state income tax brackets, it varies from state to state. Some states have the same rate for years and some adjust their brackets every year.
| Tax year | Filing status | Taxable income | Rate |
|---|---|---|---|
| 2022 | Single | $0 – $10,275 | 10% |
| $10,276 – $41,775 | 12% | ||
| $41,776 – $89,075 | 22% | ||
| $89,076 – $170,050 | 24% | ||
| $170,051 – $215,950 | 32% | ||
| $215,951 – $539,900 | 35% | ||
| $539,901 and over | 37% | ||
| Married, Filing Jointly or Widow(er) | $0 – $20,550 | 10% | |
| $20,551 – $83,550 | 12% | ||
| $83,551 – $178,150 | 22% | ||
| $178,151 – $340,100 | 24% | ||
| $340,101 – $431,900 | 32% | ||
| $431,901 – $647,850 | 35% | ||
| $647,851 and over | 37% | ||
| Married, Filing Separately | $0 – $10,275 | 10% | |
| $10,276 – $41,775 | 12% | ||
| $41,776 – $89,075 | 22% | ||
| $89,076 – $170,050 | 24% | ||
| $170,051 – $215,950 | 32% | ||
| $215,951 – $323,925 | 35% | ||
| $323,926 and over | 37% | ||
| Head of Household | $0 – $14,650 | 10% | |
| $14,651 – $55,900 | 12% | ||
| $55,901 – $89,050 | 22% | ||
| $89,051 – $170,050 | 24% | ||
| $170,051 – $215,950 | 32% | ||
| $215,951 – $539,900 | 35% | ||
| $539,901 and over | 37% | ||
| 2021 | Single | $0 – $9,950 | 10% |
| $9,951 – $40,525 | 12% | ||
| $40,526 – $86,375 | 22% | ||
| $86,376 – $164,925 | 24% | ||
| $164,926 – $209,425 | 32% | ||
| $209,426 – $523,600 | 35% | ||
| $523,601 and over | 37% | ||
| Married, Filing Jointly or Widow(er) | $0 – $19,900 | 10% | |
| $19,901 – $81,050 | 12% | ||
| $81,051 – $171,050 | 22% | ||
| $172,751 – $329,850 | 24% | ||
| $329,851 – $418,850 | 32% | ||
| $418,851 – $628,300 | 35% | ||
| $628,301 and over | 37% | ||
| Married, Filing Separately | $0 – $9,950 | 10% | |
| $9,951 – $40,525 | 12% | ||
| $40,526 – $86,375 | 22% | ||
| $86,376 – $164,925 | 24% | ||
| $164,926 – $209,425 | 32% | ||
| $209,426 – $314,150 | 35% | ||
| $314,151 and over | 37% | ||
| Head of Household | $0 – $14,200 | 10% | |
| $14,201 – $54,200 | 12% | ||
| $54,201 – $86,350 | 22% | ||
| $86,351 – $164,900 | 24% | ||
| $164,901 – $209,400 | 32% | ||
| $209,401 – $523,600 | 35% | ||
| $523,601 and over | 37% | ||
| 2020 | Single | $0 – $9,875 | 10% |
| $9,876 – $40,125 | 12% | ||
| $40,126 – $85,525 | 22% | ||
| $85,526 – $163,300 | 24% | ||
| $163,301 – $207,350 | 32% | ||
| $207,351 – $518,400 | 35% | ||
| $518,401 and over | 37% | ||
| Married, Filing Jointly or Widow(er) | $0 – $19,750 | 10% | |
| $19,751 – $80,250 | 12% | ||
| $80,251 – $171,050 | 22% | ||
| $171,051 – $326,600 | 24% | ||
| $326,601 – $414,700 | 32% | ||
| $414,701 – $622,050 | 35% | ||
| $622,051 and over | 37% | ||
| Married, Filing Separately | $0 – $9,875 | 10% | |
| $9,876 – $40,125 | 12% | ||
| $40,126 – $85,525 | 22% | ||
| $85,526 – $163,300 | 24% | ||
| $163,301 – $207,350 | 32% | ||
| $207,351 – $311,025 | 35% | ||
| $311,026 and over | 37% | ||
| Head of Household | $0 – $14,100 | 10% | |
| $14,101 – $53,700 | 12% | ||
| $53,701 – $85,500 | 22% | ||
| $85,501 – $163,300 | 24% | ||
| $163,301 – $207,350 | 32% | ||
| $207,351 – $518,400 | 35% | ||
| $518,401 and over | 37% |
Retirement contributions
There is an annual limit on how much you can contribute to your retirement funds.
The maximum employee 401(k) contribution limit for tax year 2022 is $20,500 for those under 50 and $27,000 for others aged over 50 or older. For IRA contributions, the yearly limit is $6,000 ($7,000 if you’re age 50 or older) for tax year 2022.
| Tax type | Tax year | Age | Limit |
|---|---|---|---|
| 401(k) | 2022 | Under 50 | $20,500 |
| Over 50 | $27,000 | ||
| Under 50 | $19,500 | ||
| Over 50 | $26,000 | ||
| IRA | 2022 2021 2020 |
Under 50 | $6,000 |
| Over 50 | $7,000 |
Standard deduction
You can either use the standard deduction or itemize deductions in your income tax calculation. As a thumb of rule, if your itemized deductions are less than the standard deduction, it is smarter to just claim the standard deduction amount.
For a list of itemizable deductions, refer to Dough Roller’s ultimate list.
| Tax year | Filing status | Standard deduction amount |
|---|---|---|
| 2022 | Single | $12,950 |
| Married, Filing Jointly | $25,900 | |
| Married, Filing Separately | $12,950 | |
| Head of Household | $19,400 | |
| 2021 | Single | $12,550 |
| Married, Filing Jointly | $25,100 | |
| Married, Filing Separately | $12,550 | |
| Head of Household | $18,800 | |
| 2020 | Single | $12,200 |
| Married, Filing Jointly | $24,400 | |
| Married, Filing Separately | $12,200 | |
| Head of Household | $18,350 |
FAQs
How do I calculate tax income?
You will need to following the 6 steps below to work out your federal/state/local income taxes.
- Step 1 - Determine your filing status
- Step 2 - Gross income − Retirement contributions = Adjusted gross income
- Step 3 - Adjusted gross income − Standard/Itemized deductions = Taxable income
- Step 4 - Taxable income × Tax rate = Tax liability
- Step 5 - Gross income × Payroll tax rate = Payroll tax liability
- Step 6 - Federal tax liability + Tax liability + Payroll tax liability = Total income taxes
How do you calculate income tax after salary?
First, follow our six steps formula to work out the total income taxes. Then subtract the total taxes from your gross income. If a single filer earn $60,000 per annual and his/her total income tax is $9,000, his/her after-tax income will be $51,000.