How it works
US federal income tax is progressive: each slice of taxable income faces its own bracket rate, from 10% on the first dollars to 37% above the top threshold. The calculator subtracts the standard deduction — $15,000 for single filers in this 2026 estimate, per IRS inflation adjustments — then runs every dollar through the bracket stack, summing tax per band. On $85,000 gross income with no itemised deductions entered, taxable income is $70,000. Tax by bracket: 10% on the first $11,925 = $1,192.50; 12% on $11,925–$48,475 = $4,386; 22% on $48,475–$70,000 = $4,735.50; total $10,314. After-tax income is $74,686. The effective rate — total tax divided by gross income — is 12.13%. The marginal rate — tax on the next dollar — is 22%, because $70,000 of taxable income sits in the 22% bracket. Those two rates answer different questions: marginal rate matters for raises, Roth vs traditional contributions and deductions; effective rate describes what you actually pay across all income. This estimate is federal income tax only — state tax, FICA (Social Security and Medicare) and credits such as the child tax credit are separate. Pair with the take-home pay calculator for the full paycheck picture and the tax bracket calculator to see where each dollar falls.
Formula
Taxable income = gross income − max(standard deduction, itemised deductions)
Tax = Σ (income in each bracket × bracket rate)
Effective rate = total tax / gross income × 100
Marginal rate = rate on the next dollar of taxable income
Worked example — $85,000 gross, $15,000 standard deduction (2026 single)
Taxable income = $70,000
Tax = $10,314
After-tax = $74,686
Effective rate = 12.13%
Marginal rate = 22%
Tips
- Use effective rate for budgeting and marginal rate for decisions about the next dollar earned or sheltered.
- A $5,000 traditional 401(k) contribution saves tax at your marginal rate (22% here = $1,100 federal), not at the effective rate.
- Re-run after marriage, a child, a home purchase or a large raise — bracket position moves quickly.
- Itemised deductions only help when they exceed the standard deduction; enter your total if they do.
- This is a planning estimate — tax software captures credits, AMT and phaseouts this page omits.
Frequently asked questions
- How much federal tax on $85,000 income?
- About $10,314 on the defaults, leaving $74,686 after tax. Taxable income is $70,000 after the $15,000 standard deduction; brackets are applied progressively, not as a flat rate on the whole amount.
- Why is my marginal rate 22% but effective rate only 12.13%?
- Because brackets are progressive. The first $11,925 of taxable income pays 10%, the next slice pays 12%, and only income above $48,475 pays 22%. Effective rate averages across all slices; marginal rate is the top bracket you touch.
- What is the 2026 standard deduction?
- This calculator uses $15,000 for single filers, aligned with IRS inflation-adjusted estimates for tax year 2026. If your itemised deductions exceed that figure, enter the itemised total instead.
- Does this include FICA or state tax?
- No. Social Security and Medicare (7.65% for most employees) and state income tax are separate. Use the take-home pay calculator to net out federal, state and FICA together.
- How do tax credits differ from deductions?
- A deduction reduces taxable income — worth your marginal rate per dollar ($1,000 at 22% saves $220). A credit reduces tax owed dollar-for-dollar and is far more valuable. Child tax credit, education credits and others are not included here.