How is federal income tax calculated in 2026?
Start with your total income, subtract pre-tax deductions such as a traditional 401(k) to get your adjusted gross income (AGI), then subtract the larger of the standard deduction or your itemized deductions. What’s left is taxable income, which is taxed in layers by the brackets below. Credits such as the child tax credit then come off the tax itself, dollar for dollar.
Social Security (6.2%) and Medicare (1.45%) are separate payroll taxes on wages. They don’t depend on your bracket, which is why the calculator lists them on their own line.
What are the 2026 federal tax brackets?
| Rate | Single | Married filing jointly | Head of household |
|---|---|---|---|
| 10% | Up to $12,400 | Up to $24,800 | Up to $17,700 |
| 12% | $12,401 – $50,400 | $24,801 – $100,800 | $17,701 – $67,450 |
| 22% | $50,401 – $105,700 | $100,801 – $211,400 | $67,451 – $105,700 |
| 24% | $105,701 – $201,775 | $211,401 – $403,550 | $105,701 – $201,775 |
| 32% | $201,776 – $256,225 | $403,551 – $512,450 | $201,776 – $256,200 |
| 35% | $256,226 – $640,600 | $512,451 – $768,700 | $256,201 – $640,600 |
| 37% | Over $640,600 | Over $768,700 | Over $640,600 |
Taxable income ranges for tax year 2026 (returns filed in 2027). Source: IRS Rev. Proc. 2025-32.
What changed for 2026?
- The standard deduction rose to $16,100 single / $32,200 joint.
- The child tax credit is $2,200 per child, made permanent by the One Big Beautiful Bill Act.
- New deductions for qualified tips, overtime pay and taxpayers 65 and older apply for 2025–2028, whether or not you itemize.
- The Social Security wage base is $184,500 — wages above it aren’t subject to the 6.2% tax.
What is the difference between marginal and effective tax rates?
Your marginal rate is the rate on your next dollar of taxable income — useful for judging a raise or a 401(k) contribution. Your effective rate is total tax divided by total income — useful for budgeting. A $100 traditional 401(k) contribution saves you $100 × your marginal rate in federal tax, plus state tax. See it in the 401(k) calculator.
How this calculator works
- Your wages and other ordinary income are added up, and pre-tax deductions such as a traditional 401(k), payroll HSA or Section 125 premiums are subtracted.
- The larger of the 2026 standard deduction for your filing status or the itemized amount you enter is subtracted, along with the 2025–2028 deductions you qualify for (tips, overtime, seniors), each reduced by its income phase-out.
- Federal tax is worked out bracket by bracket with the 2026 IRS brackets; the child tax credit is then subtracted.
- State tax applies your state’s 2026 rates to federal taxable income (state-specific deductions, credits and local taxes are not modeled).
- Employee Social Security (6.2% up to the 2026 wage base) and Medicare (1.45%, plus 0.9% above the threshold) are added to show your total tax and effective rate.
The assumptions behind each result are listed under the calculator. Full details: methodology.
Income tax by state (2026)
No state income tax on wages (9)
Flat-rate states (14)
Frequently asked questions
What are the 2026 federal income tax brackets?
There are seven rates: 10%, 12%, 22%, 24%, 32%, 35% and 37%. For a single filer in 2026 the 10% bracket covers the first $12,400 of taxable income and the 37% rate starts above $640,600. Married couples filing jointly get roughly double the single thresholds in the lower brackets.
What is the standard deduction for 2026?
$16,100 for single filers and married filing separately, $32,200 for married filing jointly and $24,150 for head of household (IRS Rev. Proc. 2025-32).
Is my whole income taxed at my top bracket?
No. The US uses marginal brackets: each rate applies only to the slice of taxable income inside that bracket. That is why your effective rate (total tax ÷ income) is always lower than your top bracket.
Are tips and overtime tax-free in 2026?
Not entirely. For 2025 through 2028 you can deduct up to $25,000 of qualified tips and up to $12,500 ($25,000 joint) of qualified overtime premium pay from federal taxable income. Both phase out above $150,000 of income ($300,000 joint), and they still count for Social Security, Medicare and most state taxes.
How much is the child tax credit for 2026?
Up to $2,200 per qualifying child under 17, of which up to $1,700 can be refundable. It phases out by $50 for every $1,000 of income above $200,000 ($400,000 for married filing jointly).
How accurate is the state tax estimate?
It applies each state’s 2026 rates (verified against the Tax Foundation’s 2026 state table) to your federal taxable income. States have their own deductions, credits and joint-filer brackets, and some cities add local income tax, so treat the state figure as a close estimate rather than a filing number.
Sources
Estimates only — not tax advice. CalciTools is not a CPA or law firm. These figures are educational estimates based on published IRS and state rates and a simplified model (they don't cover every deduction, credit, or situation). Verify with the IRS, your state tax agency, or a tax professional before making payments. Sources: IRS Rev. Proc. inflation adjustments & state Departments of Revenue.