Calculate US Federal Income Tax (10/12/22/24/32/35/37% brackets), UK Income Tax, or your own custom progressive brackets. See marginal rate, effective rate, and take-home pay.
Three tabs: US Federal (filing status: Single, MFJ, MFS, HoH), UK (£12,570 personal allowance with £100k taper, 20/40/45% bands), and Custom (define your own bracket schedule). Shows total tax, per-bracket breakdown, effective vs marginal rate, and net take-home.
Disclaimer: Federal only — state income tax, FICA (Social Security/Medicare), and local taxes are not included. Rates may change with new legislation. Consult a CPA for filing.
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Calculator information
📋 How to use this calculator
- Select jurisdiction: US Federal (IRS brackets), state-level, UK, or custom brackets.
- Enter annual gross income before any deductions.
- Choose filing status: Single, Married Filing Jointly, Married Filing Separately, or Head of Household.
- Add deductible amounts: standard deduction or itemized deductions, 401(k) contributions, HSA contributions, and other above-the-line adjustments.
- For self-employed or small business owners, account for self-employment tax (15.3%) and qualified business income (QBI) deduction.
- Calculate effective tax rate by dividing total tax by gross income.
- Compare against marginal rate (top bracket applied) for tax planning decisions.
🧮 US Federal Individual Income Tax (IRS brackets, 2026)
Tax = sum(taxable_income_in_bracket_i x rate_i) across all brackets reached
- Taxable Income = Gross Income - Adjustments - Standard or Itemized Deduction
- Bracket 1 (Single): $0 - $12,400 = 10%
- Bracket 2: $12,401 - $50,400 = 12%
- Bracket 3: $50,401 - $105,700 = 22%
- Bracket 4: $105,701 - $201,775 = 24%
- Bracket 5: $201,776 - $256,225 = 32%
- Bracket 6: $256,226 - $640,600 = 35%
- Bracket 7: Over $640,600 = 37%
Standard deduction 2026: Single or MFS $16,100, MFJ $32,200, HoH $24,150. Long-term capital gains and qualified dividends use separate preferential brackets. State income tax varies by state.
💡 Worked example: Married couple filing jointly, $150,000 gross household income
Given:- Annual gross income: $150,000
- Filing status: Married Filing Jointly
- Standard deduction: $32,200
- 401(k) pre-tax contributions: $15,000
- HSA contribution: $4,300
Steps:- Adjustments: $15,000 (401k) + $4,300 (HSA) = $19,300.
- Adjusted Gross Income (AGI) = $150,000 - $19,300 = $130,700.
- Taxable Income = $130,700 - $32,200 = $98,500.
- Bracket 1 (MFJ): $24,800 x 10% = $2,480.
- Bracket 2: ($98,500 - $24,800) x 12% = $73,700 x 12% = $8,844.
- Total Federal Tax = $2,480 + $8,844 = $11,324.
- Effective rate = $11,324 / $150,000 = 7.55%; marginal rate = 12%.
Result: Federal income tax owed is approximately $11,324, an effective rate of 7.55%. The next dollar of taxable income remains in the 12% bracket until $100,800 for married filing jointly in 2026.
❓ Frequently asked questions
What is the difference between effective and marginal tax rate?
The effective rate is total tax divided by total income, reflecting your average tax burden. The marginal rate is the highest bracket applied to your next dollar of income. For example, with $100,000 taxable income filing single: effective rate around 14%, marginal rate 22%. For decisions about overtime or side income, use the marginal rate because that is what applies to additional earnings.
Do all US employees need to file a tax return?
Filing requirements depend on filing status, age, income type, and dependency status. For many single filers under 65, the 2026 gross-income threshold generally tracks the $16,100 standard deduction. Self-employed individuals generally must file if net earnings are $400 or more. Check the current IRS filing-requirements table for your exact case.
What is the Qualified Business Income (QBI) deduction?
Section 199A may allow eligible pass-through business owners to deduct up to 20% of qualified business income. Income thresholds and limitations are inflation-adjusted, so use the current IRS Form 8995 instructions for the filing year. The deduction reduces taxable income but not AGI or self-employment tax.
How are taxes handled for freelancers and digital nomads?
Self-employed freelancers report income on Schedule C and pay self-employment tax plus regular income tax. Quarterly estimated payments may be required if you expect to owe at least $1,000. US citizens abroad still report worldwide income, while eligible taxpayers may claim the annually adjusted foreign earned income exclusion on Form 2555.
What are legal strategies to reduce income tax?
Common strategies include maximizing eligible tax-advantaged accounts, comparing itemized deductions with the standard deduction, harvesting capital losses within IRS limits, and using eligible education or business provisions. Deduction caps and phase-outs can change by year, so confirm current IRS rules or consult a qualified tax professional.
📚 Sources & references
Last updated: July 12, 2026