Federal income tax calculator
Federal income tax on wages and investment income, bracket by bracket.
After federal tax
Estimate$93,070
13.8% effective against a 22% marginal rate
- Federal tax
- $14,930
- Taxable income
- $91,900
- Marginal bracket
- 22%
| Wages | $120,000 |
|---|---|
| Pre-tax deferrals | -$12,000 |
| Standard deduction | -$16,100 |
| Ordinary income tax | -$14,930 |
| After federal tax | $93,070 |
- Federal only. State income tax, FICA and any local tax are charged separately.
The standard deduction of $16,100 comes off first, so taxable income is well below gross wages.
How this is calculated
How this is calculated
Deduction first, then the brackets
Taxable income is gross income less a standard or itemised deduction — $16,100 for a single filer in 2026 — and only what remains is stepped through the bracket table.
taxable = AGI − max(standard, itemised)Investment income can be taxed differently
Long-term gains and qualified dividends attract preferential rates of 0%, 15% or 20% depending on where they sit above ordinary income, rather than the ordinary bracket rate.
Federal is not the whole bill
Social Security and Medicare taxes are charged separately at 7.65% combined, and 41 states levy their own income tax on top. A federal-only figure overstates take-home by a wide margin.
Worked example: $120,000 of wages with $12,000 deferred
| Wages | $120,000 |
|---|---|
| Deferrals | $12,000 |
| Taxable income | After the deduction |
|---|---|
| Effective rate | Well below the bracket |
Deduction sizes, bracket edges and the treatment of investment income differ by country. Pick a country above for figures you can file against.
What this assumes
- Federal or national tax only.
- No dependants or credits claimed.
- Full-year residency.
- Payroll taxes charged separately.
Where this commonly goes wrong
- Retirement deferrals often reduce income tax without reducing payroll taxes, which is easy to over-count.
- Preferential rates on investment income are usually measured on total taxable income, so a large gain can push itself into a higher band.
- Bonus withholding frequently uses a flat rate that bears no relation to your actual marginal rate.
Questions
How does a progressive bracket table work?
Each band taxes only the income that falls inside it. A 22% bracket does not apply to your whole income — everything below its threshold is taxed at the lower band rates, which is why effective rates run far below headline brackets.
What is the difference between gross and taxable income?
Taxable income is gross less deductions and any pre-tax contributions. In the US a single filer subtracts at least $16,100, so the figure the brackets apply to is materially lower than salary.
Is investment income taxed the same as salary?
Rarely. Many systems apply lower rates to long-held investments, and some add a surtax for high earners. Where the gain sits relative to your other income usually determines which rate applies.
Related tools
Sources
Estimate only, based on published IRS figures for the current period. Not tax or legal advice. Confirm your position with the IRS, a CPA, or an enrolled agent.
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