# Income Tax Calculator Estimate your federal income tax liability, applicable deductions, and take-home pay based on income, filing status, and credits. --- - **Canonical URL:** https://dothecalculation.com/calculators/income-tax-calculator - **Category:** Financial calculators - **Publisher:** Do The Calculation (https://dothecalculation.com) - **Cost:** Free, no account or sign-up required - **Privacy:** Runs entirely in the browser; inputs are never sent to a server - **Methodology:** https://dothecalculation.com/methodology - **Reviewed by:** Dr. Marcus Sterling, PhD, PhD in Public Economics, University of Chicago (https://dothecalculation.com/about/team/marcus-sterling) --- ## Income Tax Calculator — Estimate Net Income from Editable Tax Rates Estimate federal, state, payroll, total tax, effective rate, and net income with fully editable assumptions — built for fast planning, not filing. - Net income estimate - Federal, state, and payroll breakdown - Effective tax rate ## What This Calculator Does This calculator estimates net (take-home) income from gross income using three editable effective tax rates — federal, state, and payroll — rather than modeling the full progressive bracket system. That tradeoff makes it fast for planning and scenario comparison (job offers, raises, freelance income) at the cost of precision you'd only get from an actual tax filing calculator or a tax professional. It is not a filing tool: it does not apply jurisdiction-specific brackets, the standard deduction, itemized deductions, credits, or filing-status rules. Instead, you supply your own best estimate of each effective rate and get an instant net income figure. ## How to Use This Calculator Enter your gross annual income, then set your estimated effective federal tax rate, state tax rate, and payroll tax rate (FICA — Social Security and Medicare). The calculator multiplies gross income by each rate to estimate that category's tax, sums them into a total, and subtracts the total from gross income to show net income and your overall effective tax rate. ## The Formula Behind the Numbers $$\text{Federal Tax} = \text{Gross Income} \times \text{Federal Rate}$$ $$\text{State Tax} = \text{Gross Income} \times \text{State Rate}$$ $$\text{Payroll Tax} = \text{Gross Income} \times \text{Payroll Rate}$$ $$\text{Total Tax} = \text{Federal Tax} + \text{State Tax} + \text{Payroll Tax}$$ $$\text{Net Income} = \text{Gross Income} - \text{Total Tax}$$ $$\text{Effective Tax Rate} = \dfrac{\text{Total Tax}}{\text{Gross Income}} \times 100$$ ## Worked Example: $90,000 Gross Income $90,000 gross income, a 14% effective federal rate, a 5% state rate, and the standard 7.65% employee payroll rate (6.2% Social Security + 1.45% Medicare). Federal tax: $90,000 × 14% = $12,600. State tax: $90,000 × 5% = $4,500. Payroll tax: $90,000 × 7.65% = $6,885. Total tax: $12,600 + $4,500 + $6,885 = $23,985. Net income: $90,000 − $23,985 = $66,015. Effective tax rate: $23,985 ÷ $90,000 × 100 ≈ 26.65%. So on $90,000 gross, roughly 73.35% actually reaches take-home pay once federal, state, and payroll taxes are combined — the effective rate that matters for real budgeting, not any single bracket's percentage. ## Effective Rate vs. Marginal Bracket — Why the Distinction Matters The federal rate you enter here should be your effective rate, not your top marginal bracket. Under a progressive tax system, only the income within each bracket is taxed at that bracket's rate — your first dollars are taxed at the lowest bracket, and only income above each threshold is taxed at the higher rates above it. Your effective rate blends all of those brackets into one average percentage of your total income, and it is always lower than your top marginal rate. Entering your marginal rate instead of your effective rate here will significantly overstate your total tax and understate net income. ## What This Simplified Model Leaves Out Because it uses flat effective rates rather than the actual bracket structure, this calculator does not account for the standard deduction or itemized deductions (which reduce taxable income before any rate is applied), tax credits (which reduce the tax bill dollar-for-dollar and are more valuable than deductions), filing status differences, or pre-tax contributions to a 401(k), traditional IRA, or HSA that would lower taxable income further. Each of those factors pushes your real effective rate below a naive bracket-based estimate — a reasonable starting point is to check a recent pay stub or last year's tax return for your actual effective rate and use that here rather than guessing from published bracket tables. ## State Taxes Vary Enormously — Adjust the State Rate Accordingly Unlike federal tax, which applies the same brackets nationwide, state income tax ranges from 0% in nine states (including Texas, Florida, and Washington) to double-digit top rates in others, with some states using flat rates and others using their own progressive bracket systems. This is one of the biggest levers in the calculator — the same $90,000 salary can net meaningfully different take-home pay purely based on which state rate you enter, which is worth remembering when comparing job offers or relocation scenarios across state lines. ## Comparing a W-2 Job Offer to Freelance or 1099 Income This calculator works for both, but the payroll rate input means something different in each case. A W-2 employee pays the standard 7.65% employee share of FICA, with their employer matching the other 7.65% separately (not reflected in the employee's own tax bill). A self-employed or 1099 worker pays both halves — 15.3% total — directly, so entering the full self-employment rate in the payroll field gives a more accurate net income comparison when weighing a W-2 offer against freelance or contract income at the same gross pay level. ## Related Calculators If you are on a W-2, cross-check this against the [salary calculator](/calculators/salary-calculator) for a per-paycheck view, or if you have 1099/freelance income, use the [side hustle income calculator](/calculators/side-hustle-income-calculator) to size your quarterly tax reserve. For a full per-paycheck breakdown using real 2026 IRS brackets, FICA, and pre-tax deductions in one place, use the [take-home paycheck calculator](/calculators/take-home-paycheck-calculator). ## Frequently asked questions ### Is this a tax filing calculator? No. It is an editable planning estimate, not a jurisdiction-specific filing tool. ### What rate should I enter? Use an estimated effective rate if you want an annual planning view. ### Does it include deductions or credits? No. Adjust the entered rates to approximate those effects. ### What is the difference between marginal and effective tax rates? Your marginal tax rate is the percentage of tax applied to your last dollar of income (your highest tax bracket). Your effective tax rate is your actual total tax paid divided by your gross income, which is always lower than your marginal rate. ### How do tax deductions differ from tax credits? Tax deductions reduce your taxable income before taxes are calculated (saving you money based on your tax bracket). Tax credits reduce your actual tax liability dollar-for-dollar, making them much more valuable. ### What are FICA payroll taxes and who pays them? FICA taxes consist of Social Security (6.2%) and Medicare (1.45%) taxes. Employees pay these directly from their paychecks, and employers match these percentages. Self-employed workers must pay both portions (15.3% total) via self-employment tax. ### How does filing status affect my income tax? Filing status (Single, Married Filing Jointly, Married Filing Separately, or Head of Household) determines your tax brackets, standard deduction amounts, and eligibility for specific tax credits and phase-out limits. ### What is the standard deduction vs. itemized deductions? The standard deduction is a flat amount you can subtract from taxable income without documentation. Itemized deductions allow you to deduct specific eligible expenses (like mortgage interest, charitable donations, state/local taxes) if their sum exceeds the standard deduction. ### How do pre-tax contributions affect my paycheck? Contributions to Traditional 401(k)s, Traditional IRAs, or Health Savings Accounts (HSAs) are deducted from your gross income before income taxes are calculated, lowering your overall tax liability and immediate tax withholding. ### What is the Alternative Minimum Tax (AMT)? The Alternative Minimum Tax is a parallel tax system designed to ensure high-income earners pay a minimum amount of tax by limiting certain deductions. You calculate your tax under both systems and pay the higher amount. ### How does self-employment income tax differ from W-2 tax? W-2 employees have taxes withheld automatically by employers. Self-employed workers receive gross income, must estimate and pay their own taxes quarterly, and are subject to self-employment tax in addition to standard income taxes. ### Are capital gains taxed differently than ordinary salary? Yes. Short-term capital gains (assets held for a year or less) are taxed at standard income rates. Long-term capital gains (assets held for over a year) are taxed at preferential rates (0%, 15%, or 20% depending on taxable income). ### What are state and local income taxes? In addition to federal taxes, most US states and some cities levy their own income taxes. These vary from flat-rate systems (e.g., Colorado) to progressive bracket systems (e.g., California). Nine states have no state income tax at all. ### What rate should I use for freelance or 1099 income? Use the full 15.3% self-employment tax rate in the payroll field (rather than the 7.65% employee-only rate), since a self-employed worker pays both the employee and employer share of FICA directly. ### How can I find my actual effective tax rate? Check a recent pay stub's year-to-date totals, or divide the total tax line on last year's tax return by your total gross income — that real figure is more accurate than estimating from published bracket tables. ### Why is my net income here different from my actual paycheck? This calculator does not model deductions, credits, filing status, or pre-tax contributions (like a 401(k) or HSA), all of which change your actual withholding — treat this as a planning estimate, not a paycheck replica. ### Can I use this to compare job offers in different states? Yes — keep the federal and payroll rates the same across offers and only change the state rate for each location, which isolates exactly how much of the take-home pay difference comes from state taxes alone. ## Related concepts - **Gross income** — Total income before any estimated taxes are subtracted. - **Net income** — Take-home income left after estimated federal, state, and payroll taxes. - **Effective tax rate** — Total estimated tax as a share of gross income — always lower than the top marginal bracket. - **FICA** — The combined Social Security (6.2%) and Medicare (1.45%) payroll tax withheld from most paychecks. - **Marginal tax bracket** — The tax rate applied only to income within the highest bracket you reach, not your entire income. ## Related guides - [Side Hustle Tax Guide: Net Profit, Self-Employment Tax, and Cash Reserves](https://dothecalculation.com/blog/finance/side-hustle-tax-guide) — Understand how side hustle taxes start with net profit, when self-employment tax applies, and how to plan reserves, estimated payments, and pricing more realistically. - [Tax-Advantaged Accounts: 2026 Rules and Comparison](https://dothecalculation.com/blog/finance/tax-advantaged-accounts) — Compare 401(k), IRA, HSA, and 529 tax treatment, review 2026 federal limits, and understand what DTC account calculators assume. ## Related calculators - [Take-Home Paycheck Calculator](https://dothecalculation.com/calculators/take-home-paycheck-calculator) — Estimate your net take-home pay per paycheck after 2026 federal tax brackets, FICA, state tax, and pre-tax deductions like 401(k) contributions. - [Estate & Gift Tax Calculator](https://dothecalculation.com/calculators/estate-tax-planning-calculator) — Estimate federal and state estate and gift tax liabilities, applicable exemptions, and net inheritance passed on to heirs. - [HSA Tax Savings Calculator](https://dothecalculation.com/calculators/hsa-tax-savings-calculator) — Estimate federal income tax and FICA tax savings from contributing pre-tax dollars to a Health Savings Account each year. - [Salary Calculator](https://dothecalculation.com/calculators/salary-calculator) — Convert gross salary into net take-home pay and see equivalent hourly, weekly, monthly, and annual income figures instantly. - [Home Affordability Calculator](https://dothecalculation.com/calculators/home-affordability-calculator) — Estimate how much home you can realistically afford based on income, debt, down payment, and current mortgage interest rates. - [Property Tax Calculator](https://dothecalculation.com/calculators/property-tax-calculator) — Calculate annual property taxes using local millage rates, assessed home value, and applicable homestead exemptions instantly. --- _This calculator is for planning and education, not financial advice. Verify rates, taxes, fees, lender rules, and local requirements before making a borrowing decision._ --- _Source: [Do The Calculation](https://dothecalculation.com/calculators/income-tax-calculator). Quote freely with attribution and a link to this page._