🇺🇸 Federal Income Tax Calculator

Estimate your federal and state tax burden

Updated for 2024 tax year on Feb 16, 2024

What was updated? 2024 federal income tax, state income tax, standard deduction & exemption
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United States federal income tax calculation

Benjamin Franklin once said: In this world nothing can be said to be certain, except death and taxes. The government of the USA subjects all residents and citizens to income taxes, including investments, overseas incomes, etc. Not reporting and paying taxes is tax evasion and a criminal offence.

The 12-month period for income taxes begins on January 1st and ends on December 31st of the same calendar year.

Federal income tax is calculated based on a progressive system, where those earning more pay a higher percentage of their income in taxes. Some states also have a progressive system, while others have a single tax rate for all income levels. Additionally, eight states do not have an income tax, and one state (New Hampshire) does not have a wage income tax. Some counties, cities, and districts may also have a local income tax, but this is rare. To calculate income tax, you determine the taxable income by subtracting deductions and exemptions.

The Federal Insurance Contributions Act (FICA) constitutes the federal payroll tax, which comprises two separate taxes. Payroll taxes are only present in some states and are based on your taxable wage, as the name suggests.

How to calculate your income taxes

There are six key steps to determine your total income tax. The income tax calculator above follows the exact steps mentioned below.

Step 1 – Determine your filing status

There are four 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’.

Suppose you are married but preferred to file separately from your partner (highly inadvisable). In that case, 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 must 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, leading 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 the tax year 2022 is $20,500. If you are age 50 or older, you can contribute an additional $6,500. For IRA contributions, the limit is $6,000 ($7,000 if you’re age 50 or older) for the tax year 2022.

Step 3 – Calculate federal/state taxable income

Now you have to calculate your taxable income to understand your tax liability. It would help if you worked out the taxable income for federal and state separately, as their formulas are slightly different. The key differences are:

  1. Different standard deduction
  2. Some states still have personal exemptions (after Tax Cuts and Jobs Act)

The formula for calculating federal taxable income is as follows:
Adjusted gross income − Standard/Itemized deductions = Federal taxable income

The procedure to derive the state taxable income is as follows:
Adjusted gross income − (Standard/Itemized deductions + Exemptions) = State taxable income

Step 4 – Federal/state/local tax liability

Like 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 as follows:
Federal taxable income × Federal tax rate = Federal tax liability

The formula to calculate state tax liability is as follows:
State taxable income × State tax rate = State tax liability

The formula to work out local tax liability is as follows:
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 subtracting 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)

The two mandatory payroll taxes that make up the FICA tax are Social Security and Medicare, and employees and employers must contribute an equal amount to each tax. However, self-employed individuals are responsible for paying the full amount themselves.

Social Security

Tax year Employment status Gross income Rate
2024 Employer Up to $168,600 6.20%
Employee 6.20%
Self-employed 12.40%
2023 Employer Up to $160,200 6.20%
Employee 6.20%
Self-employed 12.40%
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
2024
2023
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 differ every year as IRS adjusts them 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 had the same rate for years, and some adjust their brackets every year.

Tax year Filing status Taxable income Rate
2024 Single $0 - $11,600 10%
$11,601 - $47,150 12%
$47,151 - $100,525 22%
$100,526 - $191,950 24%
$191,951 - $243,725 32%
$243,726 - $609,350 35%
$609,351 and over 37%
Married, Filing Jointly or Widow(er) $0 - $23,220 10%
$23,221 - $94,300 12%
$94,301 - $201,050 22%
$201,051 - $383,900 24%
$383,901 - $487,450 32%
$487,451 - $731,200 35%
$731,201 and over 37%
Married, Filing Separately $0 - $11,600 10%
$11,601 - $47,150 12%
$47,151 - $100,525 22%
$100,526 - $191,950 24%
$191,951 - $243,725 32%
$243,726 - $365,600 35%
$365,601 and over 37%
Head of Household $0 - $16,550 10%
$16,551 - $63,100 12%
$63,101 - $100,500 22%
$100,501 - $191,950 24%
$191,951 - $243,700 32%
$243,701 - $609,350 35%
$609,351 and over 37%
2023 Single $0 - $11,000 10%
$11,001 - $44,725 12%
$44,726 - $95,375 22%
$95,376 - $182,100 24%
$182,101 - $231,250 32%
$231,251 - $578,125 35%
$578,126 and over 37%
Married, Filing Jointly or Widow(er) $0 - $22,000 10%
$22,001 - $89,450 12%
$89,451 - $190,750 22%
$190,751 - $364,200 24%
$364,201 - $462,500 32%
$462,501 - $693,750 35%
$693,751 and over 37%
Married, Filing Separately $0 - $11,000 10%
$11,001 - $44,725 12%
$44,726 - $95,375 22%
$95,376 - $182,100 24%
$182,101 - $231,250 32%
$231,251 - $346,875 35%
$346,876 and over 37%
Head of Household $0 - $15,700 10%
$15,701 - $59,850 12%
$59,851 - $95,350 22%
$95,351 - $182,100 24%
$182,101 - $231,250 32%
$231,251 - $578,100 35%
$578,101 and over 37%
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 the tax year 2022 is $20,500 for those under 50 and $27,000 for those over 50 or older. For IRA contributions, the yearly limit is $6,000 ($7,000 if you’re age 50 or older) for the tax year 2022.

Tax type Tax year Age Limit
401(k) 2023 Under 50 $22,500
Over 50 $30000
2022 Under 50 $20,500
Over 50 $27,000
2021 Under 50 $19,500
Over 50 $26,000
IRA 2023 Under 50 $6,500
Over 50 $7,500
2022
2021
2020
Under 50 $6,000
Over 50 $7,000

Standard deduction

You can 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 wiser to 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
2024 Single $14,600
Married, Filing Jointly $29,200
Married, Filing Separately $14,600
Head of Household $21,900
2023 Single $13,850
Married, Filing Jointly $27,700
Married, Filing Separately $13,850
Head of Household $20,800
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 must follow the six 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 calculate the total income taxes. Then subtract the total taxes from your gross income. If a single filer earns $60,000 annually and the total income tax is $10,050.50, the after-tax income will be $49,949.50.